The Bon-Ton Stores (BONT) vs. Nordstrom (JWN) Critical Survey

The Bon-Ton Stores (NASDAQ: BONT) and Nordstrom (NYSE:JWN) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Insider & Institutional Ownership

20.0% of The Bon-Ton Stores shares are held by institutional investors. Comparatively, 63.1% of Nordstrom shares are held by institutional investors. 45.7% of The Bon-Ton Stores shares are held by insiders. Comparatively, 7.3% of Nordstrom shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Nordstrom pays an annual dividend of $1.48 per share and has a dividend yield of 3.5%. The Bon-Ton Stores does not pay a dividend. Nordstrom pays out 70.1% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares The Bon-Ton Stores and Nordstrom’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
The Bon-Ton Stores $2.59 billion 0.00 $109.02 million ($3.99) -0.09
Nordstrom $15.00 billion 0.47 $1.69 billion $2.11 20.21

Nordstrom has higher revenue and earnings than The Bon-Ton Stores. The Bon-Ton Stores is trading at a lower price-to-earnings ratio than Nordstrom, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

The Bon-Ton Stores has a beta of 2.86, meaning that its share price is 186% more volatile than the S&P 500. Comparatively, Nordstrom has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Profitability

This table compares The Bon-Ton Stores and Nordstrom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Bon-Ton Stores -2.99% N/A -3.95%
Nordstrom 2.44% 71.57% 7.19%

Analyst Ratings

This is a summary of current recommendations for The Bon-Ton Stores and Nordstrom, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Bon-Ton Stores 0 0 0 0 N/A
Nordstrom 3 14 7 0 2.17

Nordstrom has a consensus target price of $47.90, suggesting a potential upside of 12.32%. Given Nordstrom’s higher probable upside, analysts plainly believe Nordstrom is more favorable than The Bon-Ton Stores.

Summary

Nordstrom beats The Bon-Ton Stores on 11 of the 14 factors compared between the two stocks.

The Bon-Ton Stores Company Profile

The Bon-Ton Stores, Inc. is a department store operator. The Company operates through two segments: stores and eCommerce (its Internet Websites). The Company offers a range of brand-name fashion apparel and accessories for women, men and children. It operates approximately 270 stores in over 26 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates, encompassing a total of approximately 25 million square feet. Its nationally distributed brand assortment includes a range of labels in the apparel, accessories, footwear, cosmetics and home furnishings industries, such as Anne Klein, Calvin Klein, Carters, Chaps, Clarks, Clinique, Coach, Estee Lauder, Fossil, Free People, Frye, Jessica Simpson and Vince Camuto. Its private brand portfolio includes Laura Ashley, Ruff Hewn, Relativity and Casa by Victor Alfaro.

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.

Receive News & Ratings for The Bon-Ton Stores Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for The Bon-Ton Stores Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply