Canadian Tire (TSE:CTC) and Restaurant Brands International Inc. (QSR.TO) (TSE:QSR) are both large-cap services companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.
Dividends
Canadian Tire pays an annual dividend of C$4.55 per share and has a dividend yield of 2.2%. Restaurant Brands International Inc. (QSR.TO) pays an annual dividend of C$2.08 per share and has a dividend yield of 2.7%. Canadian Tire pays out 37.0% of its earnings in the form of a dividend. Restaurant Brands International Inc. (QSR.TO) pays out 130.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares Canadian Tire and Restaurant Brands International Inc. (QSR.TO)'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Canadian Tire | N/A | N/A | N/A |
Restaurant Brands International Inc. (QSR.TO) | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of current recommendations for Canadian Tire and Restaurant Brands International Inc. (QSR.TO), as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Canadian Tire | 0 | 0 | 0 | 0 | N/A |
Restaurant Brands International Inc. (QSR.TO) | 0 | 0 | 2 | 0 | 3.00 |
Restaurant Brands International Inc. (QSR.TO) has a consensus price target of C$68.00, indicating a potential downside of 12.36%. Given Restaurant Brands International Inc. (QSR.TO)'s higher possible upside, analysts clearly believe Restaurant Brands International Inc. (QSR.TO) is more favorable than Canadian Tire.
Earnings and Valuation
This table compares Canadian Tire and Restaurant Brands International Inc. (QSR.TO)'s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Canadian Tire | C$13.81 billion | 0.92 | C$748.53 million | C$12.31 | 16.94 |
Restaurant Brands International Inc. (QSR.TO) | C$4.97 billion | 4.76 | C$486.94 million | C$1.60 | 48.55 |
Canadian Tire has higher revenue and earnings than Restaurant Brands International Inc. (QSR.TO). Canadian Tire is trading at a lower price-to-earnings ratio than Restaurant Brands International Inc. (QSR.TO), indicating that it is currently the more affordable of the two stocks.
Summary
Restaurant Brands International Inc. (QSR.TO) beats Canadian Tire on 5 of the 9 factors compared between the two stocks.