Analyzing Nordstrom (JWN) and The Competition

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

Earnings and Valuation

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This table compares Nordstrom and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nordstrom $15.14 billion $437.00 million 16.45
Nordstrom Competitors $8.05 billion $540.81 million 41.68

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

Analyst Ratings

This is a summary of recent ratings and price targets for Nordstrom and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nordstrom 1 14 5 0 2.20
Nordstrom Competitors 362 1823 1818 44 2.38

Nordstrom presently has a consensus target price of $48.94, indicating a potential upside of 0.54%. As a group, “Family clothing stores” companies have a potential upside of 1.10%. Given Nordstrom’s peers stronger consensus rating and higher possible upside, analysts plainly believe Nordstrom has less favorable growth aspects than its peers.

Institutional & Insider Ownership

59.3% of Nordstrom shares are owned by institutional investors. Comparatively, 63.8% of shares of all “Family clothing stores” companies are owned by institutional investors. 7.3% of Nordstrom shares are owned by insiders. Comparatively, 14.6% of shares of all “Family clothing stores” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.


This table compares Nordstrom and its peers’ 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%


Nordstrom pays an annual dividend of $1.48 per share and has a dividend yield of 3.0%. 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.

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 peers have a beta of 0.64, meaning that their average share price is 36% less volatile than the S&P 500.


Nordstrom peers beat Nordstrom on 11 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 Rack stores; and HauteLook; Trunk Club clubhouses and; 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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