Dillard’s (NYSE:DDS – Get Free Report) and Vipshop (NYSE:VIPS – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Volatility & Risk
Dillard’s has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Vipshop has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.
Dividends
Dillard’s pays an annual dividend of $1.20 per share and has a dividend yield of 0.2%. Vipshop pays an annual dividend of $0.60 per share and has a dividend yield of 4.8%. Dillard’s pays out 2.7% of its earnings in the form of a dividend. Vipshop pays out 19.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dillard’s has raised its dividend for 14 consecutive years.
Institutional and Insider Ownership
Analyst Ratings
This is a breakdown of current ratings and target prices for Dillard’s and Vipshop, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dillard’s | 2 | 3 | 0 | 0 | 1.60 |
| Vipshop | 2 | 4 | 3 | 1 | 2.30 |
Dillard’s currently has a consensus price target of $545.67, suggesting a potential downside of 12.85%. Vipshop has a consensus price target of $18.52, suggesting a potential upside of 47.84%. Given Vipshop’s stronger consensus rating and higher possible upside, analysts clearly believe Vipshop is more favorable than Dillard’s.
Earnings and Valuation
This table compares Dillard’s and Vipshop”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dillard’s | $6.47 billion | 1.51 | $570.19 million | $43.65 | 14.34 |
| Vipshop | $15.15 billion | 0.40 | $1.04 billion | $3.02 | 4.15 |
Vipshop has higher revenue and earnings than Dillard’s. Vipshop is trading at a lower price-to-earnings ratio than Dillard’s, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Dillard’s and Vipshop’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dillard’s | 10.48% | 31.88% | 16.20% |
| Vipshop | 9.88% | 12.63% | 7.09% |
Summary
Dillard’s beats Vipshop on 11 of the 18 factors compared between the two stocks.
About Dillard’s
Dillard’s, Inc. engages in the retail of fashion apparel, cosmetics, and home furnishings, and other consumer goods. It operates through the Retail Operations and Construction segments. The Retail Operations segment comprises sells cosmetics, ladies’ apparel, ladies’ accessories and lingerie, juniors’ and children’s apparel, men’s apparel and accessories, shoes, and home and furniture products. The Construction segment constructs and remodels stores through CDI Contractors, LLC. The company was founded by William Thomas Dillard in 1938 and is headquartered in Little Rock, AR.
About Vipshop
Vipshop Holdings Limited operates online platforms in the People's Republic of China. It operates in Vip.com, Shan Shan Outlets, and Others segments. The company offers womenswear, menswear, sportswear and sporting goods, shoes and bags, accessories, baby and children products, skincare and cosmetics, home goods and other lifestyle products, and supermarket products. It also provides internet finance services, including consumer and supplier financing. In addition, the company engages in warehousing, retail business, product procurement, and software development and information technology support activities. The company provides branded products through its vip.com and vipshop.com online platforms, as well as through retail stores. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.
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