KSS vs M: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
KSS and M are similarly sized, but M trades noticeably cheaper on forward earnings (10.66x vs 12.92x): the market is paying up for KSS's profile and pricing M more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
KSS vs M: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | KSS | M | What it tells you |
|---|---|---|---|
| Forward P/E | 12.92 | 10.66 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 8.04 | 10.26 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.43 | 1.49 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 58% of range | 91% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 0.54 | 1.35 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: M is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how KSS and M affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. KSS and M share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined KSS and M exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Kohl's (KSS) do?
Kohl's Corporation operates a chain of roughly 1,150 department stores across most of the United States, most of them in suburban strip centers rather than enclosed malls. It sells moderately priced apparel, footwear, accessories, home goods, and beauty products, mixing national brands with a meaningful slate of proprietary and exclusive labels that carry higher margins. The company makes money on retail merchandise sales both in store and online (digital reached about 26% of net sales in early 2026), and it also earns fee income from its co-branded Kohl's Card credit program. Loyalty mechanics like Kohl's Cash and Kohl's Rewards are central to how it drives repeat traffic.
What does Macy's (M) do?
Macy's, Inc. is a US retail company built around three banners: Macy's, the mid-tier department store that carries the company's name; Bloomingdale's, a higher-end luxury chain; and Bluemercury, a specialty beauty and cosmetics retailer. It sells apparel, accessories, cosmetics, home goods, and other merchandise through hundreds of stores and its e-commerce sites. Beyond retail, Macy's owns a substantial real-estate portfolio, and the value of that property has long been part of the investment debate around the stock.
KSS vs M: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- KSS drivers: Sephora beauty as a traffic engine; Owned real estate and asset value.
- M drivers: Reimagined stores and the turnaround plan; Bloomingdale's and Bluemercury as growth banners.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The core bear case is secular: department stores have been losing share for years to off-price chains, mass merchants, and online retail, and Kohl's comparable sales have been negative for an extended stretch even as recent declines narrowed. For M, the central risk is structural: department stores have lost share for years to online sellers, off-price chains, and direct-to-consumer brands, and a turnaround does not reverse that secular pressure.
KSS or M: which should you pick?
KSS vs M: the full fundamentals
KSS. These figures are approximate and tied to the asOf date; verify current numbers before acting. The central valuation debate is whether Kohl's is cheap for a reason: a low P/E and a high dividend yield can signal either deep value or a value trap where the market is pricing in continued decline. With thin operating margins and still-negative comparable sales, small swings in either direction move the equity and the dividend's coverage significantly.
M. Figures are approximate and tied to the asOf date; verify live numbers before acting. Macy's trades at a low earnings multiple typical of legacy retail, which can look cheap but reflects genuine doubts about long-term growth. The turnaround has shown early progress, yet the stock's re-rating depends on management proving the reimagined model works at scale, not just in a pilot group. Treat any single quarter's comp as a data point, not a trend.
Headline figures (approximate, 2026-06-27): KSS shows revenue (ttm, approx.) ~$15 billion, q1 fy2026 comparable sales ~-1.1% (best in 4+ years), fy2026 adj. operating margin guide ~2.8% to 3.4%, dividend (annualized) ~$0.50 per share; M shows business model Department-store retail across Macy's, Bloomingdale's, and Bluemercury banners, plus a large owned-real-estate portfolio, recent results Q1 fiscal 2026 delivered ~3% comparable sales growth, the strongest first-quarter comp in four years, with an EPS beat, full-year guidance Raised outlook to net sales of roughly $21.5 to $21.75 billion for fiscal 2026, valuation style Trades as a value-and-income turnaround name, well off multi-year highs.
The bottom line: KSS vs M
KSS and M are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined KSS and M exposure against your real portfolio. It is not an investment adviser.
Wondering how KSS or M fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Kohl's with AI
Connect the broker you already use and ask Walnut's AI how KSS fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between KSS and M?
+
Kohl's Corporation operates a chain of roughly 1,150 department stores across most of the United States, most of them in suburban strip centers rather than enclosed malls. Macy's, Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is KSS or M the better stock?
+
Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, KSS or M?
+
On forward P/E (as of August 2026), KSS trades at 12.92x and M at 10.66x, so M is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both KSS and M?
+
Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of KSS vs M?
+
KSS: The core bear case is secular: department stores have been losing share for years to off-price chains, mass merchants, and online retail, and Kohl's comparable sales have been negative for an extended stretch even as recent declines narrowed. Margins are thin (management guided adjusted operating margin to roughly the ~2.8% to 3.4% range for fiscal 2026), leaving little cushion. The dividend was already reduced and could be trimmed again if earnings weaken, which would undercut the income thesis. Execution risk is elevated after heavy leadership turnover, including a CEO terminated for cause in 2025 after only months on the job before a permanent CEO was named in late 2025. M: The central risk is structural: department stores have lost share for years to online sellers, off-price chains, and direct-to-consumer brands, and a turnaround does not reverse that secular pressure. Macy's remains exposed to discretionary consumer spending, so a weaker economy or a cautious shopper can quickly pressure comparable sales and margins. Store closures shrink the footprint even as they improve quality, meaning total sales can decline while the reimagined base grows, which complicates the growth narrative. The plan spans multiple years and depends heavily on management execution, and any stumble in the reimagined-store rollout would undercut the thesis. Tariffs and higher input costs add margin uncertainty, and the real-estate value, while real, is not easily or quickly converted into cash for shareholders.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell KSS or M; figures are approximate and dated (as of August 2026). Verify current data before investing.