Contrasting QVC Group (NASDAQ:QVCGA) and Macy’s (NYSE:M)

Macy’s (NYSE:M – Get Free Report) and QVC Group (NASDAQ:QVCGA – 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, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Earnings & Valuation

This table compares Macy’s and QVC Group”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Macy’s $22.62 billion 0.26 $642.00 million $2.73 8.34
QVC Group $9.23 billion 0.00 -$2.44 billion ($460.35) -0.00

Macy’s has higher revenue and earnings than QVC Group. QVC Group is trading at a lower price-to-earnings ratio than Macy’s, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Macy’s has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, QVC Group has a beta of 2.85, indicating that its share price is 185% more volatile than the S&P 500.

Institutional and Insider Ownership

87.4% of Macy’s shares are owned by institutional investors. Comparatively, 64.1% of QVC Group shares are owned by institutional investors. 1.1% of Macy’s shares are owned by insiders. Comparatively, 12.3% of QVC Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Macy’s and QVC Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macy’s 3.29% 13.21% 3.83%
QVC Group -26.42% -1.02% 0.32%

Analyst Recommendations

This is a summary of recent recommendations for Macy’s and QVC Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macy’s 2 9 2 0 2.00
QVC Group 1 0 0 0 1.00

Macy’s currently has a consensus price target of $22.78, indicating a potential upside of 0.09%. Given Macy’s’ stronger consensus rating and higher possible upside, equities analysts clearly believe Macy’s is more favorable than QVC Group.

Summary

Macy’s beats QVC Group on 12 of the 14 factors compared between the two stocks.

About Macy’s

(Get Free Report)

Macy’s, Inc. engages in the retail of apparel, accessories, cosmetics, home furnishings, and other consumer goods. The firm’s brands include Macy’s, Bloomingdale’s, and Bluemercury. It offers men’s, women’s, and children’s apparel, women’s accessories, intimate apparel, shoes, cosmetics, fragrances, as well as home and miscellaneous products. The company was founded by Rowland H. Macy in 1858 and is headquartered in New York, NY.

About QVC Group

(Get Free Report)

QVC Group, Inc. engages in the business of video and online commerce industries. It operates through the following segments: QxH, QVC International and CBI. The QxH segment markets and sells a wide variety of consumer products in the U.S., primarily by means of its televised shopping programs and via the Internet through their websites and mobile applications. The QVC International segment markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the Internet through its international websites and mobile applications. The CBI segment consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the Internet through their websites. The company was founded on March 28, 1991 and is headquartered in Englewood, CO.

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