Comparing Dillard’s (NYSE:DDS) and LightInTheBox (NYSE:LITB)
by Kim Johansen · The Markets DailyLightInTheBox (NYSE:LITB – Get Free Report) and Dillard’s (NYSE:DDS – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Earnings & Valuation
This table compares LightInTheBox and Dillard’s”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LightInTheBox | $224.32 million | 0.24 | $8.28 million | $0.48 | 6.38 |
| Dillard’s | $6.47 billion | 1.65 | $570.19 million | $43.65 | 15.67 |
Dillard’s has higher revenue and earnings than LightInTheBox. LightInTheBox is trading at a lower price-to-earnings ratio than Dillard’s, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
LightInTheBox has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, Dillard’s has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Profitability
This table compares LightInTheBox and Dillard’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LightInTheBox | 3.91% | -231.00% | 13.47% |
| Dillard’s | 10.48% | 31.88% | 16.20% |
Analyst Recommendations
This is a summary of current recommendations and price targets for LightInTheBox and Dillard’s, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LightInTheBox | 0 | 1 | 0 | 0 | 2.00 |
| Dillard’s | 2 | 3 | 0 | 0 | 1.60 |
Dillard’s has a consensus price target of $545.67, indicating a potential downside of 20.21%. Given Dillard’s’ higher possible upside, analysts clearly believe Dillard’s is more favorable than LightInTheBox.
Insider & Institutional Ownership
56.8% of LightInTheBox shares are owned by institutional investors. Comparatively, 67.2% of Dillard’s shares are owned by institutional investors. 62.2% of LightInTheBox shares are owned by insiders. Comparatively, 34.8% of Dillard’s shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Dillard’s beats LightInTheBox on 11 of the 13 factors compared between the two stocks.
About LightInTheBox
LightInTheBox Holding Co., Ltd., together with its subsidiaries, operates as an online retailer that delivers products directly to its consumers worldwide. The company provides apparel products; and other general merchandise products, such as small accessories and gadgets, home garden, toys and hobbies, electronics and communication devices, and other products. It also offers supplier chain management, research and development, customer, marketing, warehouse management, local delivery, and fulfillment services, as well as engages in the product sourcing, marketing, and operation of its websites and mobile applications. The company provides its products through www.lightinthebox.com and www.ezbuy.sg, and other websites and mobile applications. LightInTheBox Holding Co., Ltd. was founded in 2007 and is based in Singapore.
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.