Dillard’s (NYSE:DDS) & Lojas Renner (NYSE:LRENY) Critical Comparison

Lojas Renner (OTCMKTS:LRENY) and Dillard’s (NYSE:DDS) are both consumer cyclical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Insider & Institutional Ownership

90.2% of Dillard’s shares are owned by institutional investors. 20.1% of Dillard’s shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Lojas Renner and Dillard’s, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lojas Renner 0 0 1 0 3.00
Dillard’s 3 2 0 0 1.40

Dillard’s has a consensus target price of $54.60, indicating a potential downside of 21.77%. Given Dillard’s’ higher probable upside, analysts plainly believe Dillard’s is more favorable than Lojas Renner.

Profitability

This table compares Lojas Renner and Dillard’s’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lojas Renner N/A N/A N/A
Dillard’s 2.03% 7.06% 3.33%

Valuation & Earnings

This table compares Lojas Renner and Dillard’s’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lojas Renner N/A N/A N/A N/A N/A
Dillard’s $6.36 billion 0.27 $170.26 million $6.12 11.40

Dillard’s has higher revenue and earnings than Lojas Renner.

Summary

Dillard’s beats Lojas Renner on 7 of the 9 factors compared between the two stocks.

Lojas Renner Company Profile

Lojas Renner S.A., together with its subsidiaries, engages in the retail trading of clothing, sports products, shoes, accessories, and perfumery in Brazil. The company operates through Retail and Financial Products segments. It is involved in the retail sale of fashion garment for women, men, and children; cosmetics, and watches; footwear; home and decoration products; and domestic appliances, towels, and linen. The company also engages in the intermediation of financial services, granting of personal borrowings, and financing of purchases and insurance. As of March 31, 2018, it owned and operated 326 Renner stores, 85 Youcom units, and 98 Camicado stores. Lojas Renner S.A. was founded in 1912 and is headquartered in Porto Alegre, Brazil.

Dillard’s Company Profile

Dillard's, Inc. operates retail department stores primarily in the Southeastern, Southwestern, and Midwestern areas of the United States. The company's stores offer a selection of merchandise, including fashion apparel for women, men, and children; accessories; cosmetics; home furnishings; and other consumer goods. Its brand merchandise includes Antonio Melani, Gianni Bini, GB, Roundtree & Yorke, and Daniel Cremieux. The company also sells its merchandise online through its Website, dillards.com, which provides online gift registries and various other services. In addition, it operates a general contracting construction company that engages in constructing and remodeling stores. As of February 3, 2018, the company operated 292 Dillard's stores, including 24 clearance centers; and an Internet store. Dillard's, Inc. was founded in 1938 and is based in Little Rock, Arkansas.

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