Alimentation Couche-Tard (ATD) Competitors

Canadian Tire (TSE:CTC) and Alimentation Couche-Tard (TSE:ATD) are both large-cap consumer cyclical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, media sentiment, profitability, earnings, dividends and risk.

Is CTC or ATD a better dividend stock?

Canadian Tire pays an annual dividend of C$7.05 per share and has a dividend yield of 3.0%. Alimentation Couche-Tard pays an annual dividend of C$0.55 per share and has a dividend yield of 0.7%. Canadian Tire pays out 51.5% of its earnings in the form of a dividend. Alimentation Couche-Tard pays out 20.3% 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.

Which has preferable earnings & valuation, CTC or ATD?

Alimentation Couche-Tard has higher revenue and earnings than Canadian Tire. Canadian Tire is trading at a lower price-to-earnings ratio than Alimentation Couche-Tard, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Tire	C$16.69B	0.77	C$446.23M	C$13.68	17.37
Alimentation Couche-Tard	C$71.93B	0.96	C$1.79B	C$2.70	27.27

Which has more risk and volatility, CTC or ATD?

Canadian Tire has a beta of 0.578219, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Alimentation Couche-Tard has a beta of 0.335737, indicating that its stock price is 66% less volatile than the S&P 500.

Do analysts rate CTC or ATD?

Canadian Tire currently has a consensus price target of C$140.00, suggesting a potential downside of 41.09%. Alimentation Couche-Tard has a consensus price target of C$85.31, suggesting a potential upside of 15.84%. Given Alimentation Couche-Tard's stronger consensus rating and higher probable upside, analysts clearly believe Alimentation Couche-Tard is more favorable than Canadian Tire.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Tire	1 Sell rating(s)	3 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.75
Alimentation Couche-Tard	0 Sell rating(s)	1 Hold rating(s)	11 Buy rating(s)	2 Strong Buy rating(s)	3.07

Is CTC or ATD more profitable?

Canadian Tire has a net margin of 3.98% compared to Alimentation Couche-Tard's net margin of 3.53%. Alimentation Couche-Tard's return on equity of 18.96% beat Canadian Tire's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Canadian Tire	3.98%	11.54%	3.90%
Alimentation Couche-Tard	3.53%	18.96%	7.00%

Do insiders and institutionals believe in CTC or ATD?

0.5% of Canadian Tire shares are held by institutional investors. Comparatively, 35.3% of Alimentation Couche-Tard shares are held by institutional investors. 81.9% of Canadian Tire shares are held by company insiders. Comparatively, 18.7% of Alimentation Couche-Tard shares are held 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.

Does the media prefer CTC or ATD?

In the previous week, Alimentation Couche-Tard had 22 more articles in the media than Canadian Tire. MarketBeat recorded 23 mentions for Alimentation Couche-Tard and 1 mentions for Canadian Tire. Canadian Tire's average media sentiment score of 0.92 beat Alimentation Couche-Tard's score of 0.44 indicating that Canadian Tire is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Canadian Tire	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Alimentation Couche-Tard	6 Very Positive mention(s)	3 Positive mention(s)	4 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Neutral

Summary

Alimentation Couche-Tard beats Canadian Tire on 13 of the 19 factors compared between the two stocks.