Head-To-Head Analysis: Dillard’s (NYSE:DDS) vs. Meituan (OTCMKTS:MPNGF)

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

Earnings & Valuation

This table compares Meituan 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
Meituan	N/A	N/A	N/A	N/A	N/A
Dillard’s	$6.47 billion	1.48	$570.19 million	$42.06	14.59

Dillard’s has higher revenue and earnings than Meituan.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Meituan	N/A	N/A	N/A
Dillard’s	10.09%	31.43%	15.63%

Insider and Institutional Ownership

67.2% of Dillard’s shares are held by institutional investors. 34.8% of Dillard’s shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Meituan and Dillard’s, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meituan	1	1	1	0	2.00
Dillard’s	2	3	0	0	1.60

Meituan currently has a consensus price target of $10.00, indicating a potential downside of 15.61%. Dillard’s has a consensus price target of $521.33, indicating a potential downside of 15.03%. Given Dillard’s’ higher possible upside, analysts plainly believe Dillard’s is more favorable than Meituan.

Summary

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

About Meituan

Meituan operates as a technology retail company in the People's Republic of China. It operates through Core Local Commerce and New Initiatives segments. The company offers food delivery services; and helps consumers purchase local consumer services provided by merchants in numerous in-store categories or make reservations for hotels, and attraction and transportation ticketing. It also sells goods from B2B food distribution services and Meituan grocery; and engages in various businesses, such as Meituan Select, Meituan Instashopping, ride sharing, bike-sharing and electric mopeds, power banks, and micro-credit services. In addition, it provides cloud computing services; merchant information technology and advisory services; online marketing services; and operates e-commerce service platform. The company was formerly known as Meituan Dianping and changed its name to Meituan in October 2020. Meituan was founded in 2003 and is headquartered in Beijing, China.

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.