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

QVC Group (NASDAQ:QVCGA) and Macy’s (NYSE:M) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Earnings and Valuation

This table compares QVC Group and Macy’s”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QVC Group	$9.23 billion	0.00	-$2.44 billion	($460.35)	-0.00
Macy’s	$22.62 billion	0.26	$642.00 million	$2.73	8.29

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.

Analyst Ratings

This is a breakdown of current ratings and target prices for QVC Group and Macy’s, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QVC Group	1	0	0	0	1.00
Macy’s	2	8	3	0	2.08

Macy’s has a consensus price target of $22.78, suggesting a potential upside of 0.62%. Given Macy’s’ stronger consensus rating and higher possible upside, analysts clearly believe Macy’s is more favorable than QVC Group.

Insider & Institutional Ownership

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

Profitability

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

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

Risk and Volatility

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

Summary

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

About QVC Group

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.

About Macy’s

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.