Head-To-Head Contrast: Nordstrom (JWN) versus Its Rivals

Nordstrom (NYSE: JWN) is one of 14 publicly-traded companies in the “Family clothing stores” industry, but how does it weigh in compared to its competitors? We will compare Nordstrom to similar businesses based on the strength of its institutional ownership, dividends, analyst recommendations, valuation, risk, profitability and earnings.

Dividends

Nordstrom pays an annual dividend of $1.48 per share and has a dividend yield of 3.2%. 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 2.1% and pay out 39.5% of their earnings in the form of a dividend.

Insider and Institutional Ownership

58.9% of Nordstrom shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Family clothing stores” companies are owned by institutional investors. 7.3% of Nordstrom shares are owned by insiders. Comparatively, 14.3% of shares of all “Family clothing stores” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Nordstrom and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nordstrom $15.14 billion $437.00 million 15.80
Nordstrom Competitors $8.05 billion $540.81 million 41.48

Nordstrom has higher revenue, but lower earnings than its competitors. Nordstrom is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Nordstrom has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Nordstrom’s competitors have a beta of 0.64, meaning that their average share price is 36% less volatile than the S&P 500.

Profitability

This table compares Nordstrom and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nordstrom 2.86% 60.72% 6.20%
Nordstrom Competitors 4.10% 17.57% 7.85%

Analyst Ratings

This is a breakdown of recent recommendations for Nordstrom and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nordstrom 1 14 5 0 2.20
Nordstrom Competitors 362 1822 1818 44 2.38

Nordstrom presently has a consensus target price of $48.94, suggesting a potential upside of 4.62%. As a group, “Family clothing stores” companies have a potential upside of 1.89%. Given Nordstrom’s higher possible upside, analysts plainly believe Nordstrom is more favorable than its competitors.

Summary

Nordstrom competitors beat Nordstrom on 10 of the 15 factors compared.

Nordstrom Company Profile

Nordstrom, Inc., a fashion retailer, provides apparel, shoes, cosmetics, and accessories for women, men, young adults, and children in the United States and Canada. The company operates in two segments, Retail and Credit. The Retail segment offers a range of brand name and private label merchandise through various channels, including Nordstrom branded full-line stores and online store at Nordstrom.com; Nordstrom Rack stores; Nordstromrack.com and HauteLook; Trunk Club clubhouses and TrunkClub.com; Jeffrey boutiques; and clearance stores that operate under the Last Chance name. The Credit segment provides access to various payment products and services, including Nordstrom-branded Visa credit cards, a Nordstrom-branded private label credit card, and a debit card. As of March 19, 2018, the company operated 363 stores in 40 states, including 117 Nordstrom full-line stores; 235 Nordstrom Rack stores; 2 Jeffrey boutiques; 2 clearance stores; 7 Trunk Club clubhouses; and 6 Nordstrom full-line stores in Canada. Nordstrom, Inc. was founded in 1901 and is headquartered in Seattle, Washington.

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