Nordstrom (NYSE: JWN) is one of 14 public companies in the “Family clothing stores” industry, but how does it contrast to its rivals? We will compare Nordstrom to related businesses based on the strength of its risk, valuation, profitability, earnings, analyst recommendations, dividends and institutional ownership.
Nordstrom pays an annual dividend of $1.48 per share and has a dividend yield of 3.1%. Nordstrom pays out 50.0% of its earnings in the form of a dividend. As a group, “Family clothing stores” companies pay a dividend yield of 1.9% and pay out 37.3% of their earnings in the form of a dividend.
This table compares Nordstrom and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Nordstrom||$15.14 billion||$437.00 million||16.23|
|Nordstrom Competitors||$8.05 billion||$540.81 million||45.52|
Nordstrom has higher revenue, but lower earnings than its rivals. Nordstrom is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This table compares Nordstrom and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
58.8% of Nordstrom shares are owned by institutional investors. Comparatively, 63.7% of shares of all “Family clothing stores” companies are owned by institutional investors. 7.3% of Nordstrom shares are owned by company insiders. Comparatively, 14.3% of shares of all “Family clothing stores” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Nordstrom has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Nordstrom’s rivals have a beta of 0.64, meaning that their average share price is 36% less volatile than the S&P 500.
This is a breakdown of current ratings for Nordstrom and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nordstrom currently has a consensus target price of $49.31, suggesting a potential upside of 2.67%. As a group, “Family clothing stores” companies have a potential downside of 1.40%. Given Nordstrom’s higher probable upside, equities research analysts clearly believe Nordstrom is more favorable than its rivals.
Nordstrom rivals beat Nordstrom on 10 of the 15 factors compared.
Nordstrom Company Profile
Nordstrom, Inc. is a fashion specialty retailer in the United States. The Company’s segments include Retail and Credit. As of March 20, 2017, the Company operated 344 the United States stores located in 40 states as well as an e-commerce business. The Company also offers its customers a variety of payment products and services, including credit and debit cards. As of March 20, 2017, the Retail segment included its 117 Nordstrom-branded full-line stores in the United States and Nordstrom.com, 216 off-price Nordstrom Rack stores, five Canada full-line stores, Nordstromrack.com/HauteLook, seven Trunk Club clubhouses and TrunkClub.com, two Jeffrey boutiques and two clearance stores that operate under the name Last Chance. The Company, through Credit segment, allows its customers to access a range of payment products and services, including a Nordstrom-branded private label card, approximately two Nordstrom-branded Visa credit cards and a debit card for Nordstrom purchases.
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