Which Is a Better Investment, Dillard's Inc or Macy's Inc Stock?

By AAII Staff
November 27, 2025
Large versus logo comparing two stocks in the same industry
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Sifting through countless of stocks in the Broadline Retail industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Dillard's, Inc., Macy's or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Dillard's, Inc., Macy's and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Dillard's, Inc., Macy's and Inc.

Dillard's, Inc. operates retail department stores in the southeastern, southwestern, and midwestern areas of the United States. The company offers fashion apparel for men, women, and children; accessories, cosmetics, home furnishings, and other consumer goods through dillards.com, an Internet store and clearance centers. It also engages in the general contracting construction activities, such as constructing and remodeling stores for the company. The company was founded in 1938 and is based in Little Rock, Arkansas.

Macy's, Inc., an omni-channel retail organization, operates stores, websites, and mobile applications in the United States. It sells a range of merchandise, such as apparel and accessories for men, women, and kids; cosmetics; home furnishings; and other consumer goods under the Macy's, Bloomingdale's, and Bluemercury brands. The company also operates in Dubai, the United Arab Emirates, and Al Zahra, Kuwait under the license agreements. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy's, Inc. in June 2007. Macy's, Inc. was founded in 1830 and is based in New York, New York.

Latest Broadline Retail and Dillard's, Inc., Macy's, Inc. Stock News

As of November 26, 2025, Dillard's, Inc. had a $10.5 billion market capitalization, compared to the Broadline Retail median of $6.0 million. Dillard's, Inc.’s stock is up 55.5% in 2025, up 10.9% in the previous five trading days and up 50.49% in the past year.

Currently, Dillard's, Inc.’s price-earnings ratio is 18.5. Dillard's, Inc.’s trailing 12-month revenue is $6.6 billion with a 8.8% net profit margin. Year-over-year quarterly sales growth most recently was 1.4%. Analysts expect adjusted earnings to reach $32.520 per share for the current fiscal year. Dillard's, Inc. currently has a 3.9% dividend yield.

As of November 26, 2025, Macy's, Inc. had a $6.0 billion market cap, putting it in the 72nd percentile of all stocks. Macy's, Inc.’s stock is up 32.5% in 2025, up 15.6% in the previous five trading days and up 37.61% in the past year.

Currently, Macy's, Inc.’s price-earnings ratio is 12.7. Macy's, Inc.’s trailing 12-month revenue is $22.7 billion with a 2.2% net profit margin. Year-over-year quarterly sales growth most recently was -1.9%. Analysts expect adjusted earnings to reach $1.971 per share for the current fiscal year. Macy's, Inc. currently has a 3.3% dividend yield.

How We Compare Dillard's, Inc., Macy's and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Dillard's, Inc., Macy's and Inc.’s stock grades to see how they measure up against one another.

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Dillard's, Inc., Macy's and Inc. Stock Value Grades

Company Ticker Value
Dillard's, Inc. DDS B
Macy's, Inc. M A

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Dillard's, Inc. has a Value Score of 66, which is Value. Macy's, Inc. has a Value Score of 94, which is Deep Value.

The Value Stock Winner: Macy's, Inc.

As you can clearly see from the Value Grade breakdown above, Macy's, Inc. is considered to have better value than Dillard's, Inc.. For investors who focus solely on a company’s valuation, Macy's, Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Dillard's, Inc., Macy's and Inc. Growth Grades

Company Ticker Growth
Dillard's, Inc. DDS C
Macy's, Inc. M D

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Dillard's, Inc. has a Growth Score of 47, which is Average. Macy's, Inc. has a Growth Score of 26, which is Weak.

The Growth Stock Winner: No Clear Winner

Neither Dillard's, Inc., Macy's or Inc. has a high enough Growth Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Dillard's, Inc., Macy's or Inc. is the better investment when it comes to sustainable growth.

Dillard's, Inc., Macy's and Inc.’s Momentum Grades

Company Ticker Momentum
Dillard's, Inc. DDS A
Macy's, Inc. M A

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Dillard's, Inc. has a Momentum Score of 83, which is Very Strong. Macy's, Inc. has a Momentum Score of 91, which is Very Strong.

The Momentum Grade Winner: It’s a Tie!

Looking at the Momentum Grade breakdown above, both Dillard's, Inc., Macy's and Inc. have a grade of A. For those who focus solely on a company’s momentum, further research will need to be conducted into both companies to see if they fit your individual needs as an investor.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other Dillard's, Inc., Macy's and Inc. Grades

In addition to Value, Momentum and Growth, A+ Investor also provides grades for Estimate Revisions and Quality.

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AAII’s expansive and robust screening tools like A+ Investor help investors make confident decisions.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Dillard's, Inc., Macy's and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Dillard's, Inc., Macy's or Inc. Stock?

Overall, Dillard's, Inc. stock has a Value Score of 66, Growth Score of 47 and Momentum Score of 83.

Macy's, Inc. stock has a Value Score of 94, Growth Score of 26 and Momentum Score of 91.

Comparing Dillard's, Inc., Macy's and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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