Marui Group (OTCMKTS:MAURY) vs. Macy’s (NYSE:M) Head to Head Review

Marui Group (OTCMKTS:MAURY) and Macy’s (NYSE:M) are both mid-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Marui Group and Macy’s, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marui Group	0	0	0	0	0.00
Macy’s	2	10	0	1	2.00

Macy’s has a consensus target price of $13.20, suggesting a potential upside of 19.62%. Given Macy’s’ stronger consensus rating and higher possible upside, analysts clearly believe Macy’s is more favorable than Marui Group.

Volatility & Risk

Marui Group has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, Macy’s has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500.

Earnings and Valuation

This table compares Marui Group and Macy’s”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marui Group	$1.67 billion	2.17	$175.49 million	$1.88	21.36
Macy’s	$23.01 billion	0.13	$582.00 million	$1.97	5.60

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

Institutional & Insider Ownership

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

Dividends

Marui Group pays an annual dividend of $0.48 per share and has a dividend yield of 1.2%. Macy’s pays an annual dividend of $0.73 per share and has a dividend yield of 6.6%. Marui Group pays out 25.5% of its earnings in the form of a dividend. Macy’s pays out 37.1% 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. Macy’s has raised its dividend for 4 consecutive years. Macy’s is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marui Group	10.44%	10.89%	2.47%
Macy’s	2.45%	16.34%	4.35%

Summary

Macy’s beats Marui Group on 13 of the 17 factors compared between the two stocks.

About Marui Group

Marui Group Co., Ltd., an investment holding company, engages in the retailing and FinTech businesses in Japan. The company engages in the design and construction of commercial facilities; advertising planning and production; property management; rental of real estate properties; small-amount short-term insurance policy business; and sale of investment trusts. It is also involved in the operation of websites; contract store opening and operation services; provision of credit card services; operation of Marui/Modi stores; investing and financing direct-to-consumer businesses; internet sales; specialty store; credit loan; collection and management of receivables; credit check; trucking and forwarding; software development; and operation of IT systems, and building management businesses. The company was founded in 1931 and is headquartered in Tokyo, Japan.

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.