Dollarama (DOL) Competitors

Dollarama (TSE:DOL) and Loblaw Companies (TSE:L) are both large-cap consumer defensive companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, media sentiment, analyst recommendations, earnings, institutional ownership and dividends.

Do insiders & institutionals have more ownership in DOL or L?

47.1% of Dollarama shares are owned by institutional investors. Comparatively, 13.8% of Loblaw Companies shares are owned by institutional investors. 2.2% of Dollarama shares are owned by company insiders. Comparatively, 53.8% of Loblaw Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Which has preferable earnings and valuation, DOL or L?

Loblaw Companies has higher revenue and earnings than Dollarama. Loblaw Companies is trading at a lower price-to-earnings ratio than Dollarama, 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
Dollarama	C$6.69B	7.51	C$1.08B	C$4.51	40.31
Loblaw Companies	C$62.29B	1.11	C$2.23B	C$2.02	28.85

Do analysts prefer DOL or L?

Dollarama currently has a consensus target price of C$201.00, suggesting a potential upside of 10.56%. Loblaw Companies has a consensus target price of C$199.25, suggesting a potential upside of 242.30%. Given Loblaw Companies' higher possible upside, analysts clearly believe Loblaw Companies is more favorable than Dollarama.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollarama	0 Sell rating(s)	4 Hold rating(s)	6 Buy rating(s)	2 Strong Buy rating(s)	2.83
Loblaw Companies	0 Sell rating(s)	2 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.75

Is DOL or L more profitable?

Dollarama has a net margin of 17.85% compared to Loblaw Companies' net margin of 3.71%. Dollarama's return on equity of 135.38% beat Loblaw Companies' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Dollarama	17.85%	135.38%	16.58%
Loblaw Companies	3.71%	19.90%	5.89%

Does the media prefer DOL or L?

In the previous week, Dollarama had 4 more articles in the media than Loblaw Companies. MarketBeat recorded 7 mentions for Dollarama and 3 mentions for Loblaw Companies. Loblaw Companies' average media sentiment score of 0.48 beat Dollarama's score of 0.24 indicating that Loblaw Companies is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Dollarama	2 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
Loblaw Companies	1 Very Positive mention(s)	2 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Is DOL or L a better dividend stock?

Dollarama pays an annual dividend of C$0.40 per share and has a dividend yield of 0.2%. Loblaw Companies pays an annual dividend of C$0.53 per share and has a dividend yield of 0.9%. Dollarama pays out 8.8% of its earnings in the form of a dividend. Loblaw Companies pays out 26.1% 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 more risk & volatility, DOL or L?

Dollarama has a beta of 0.048693, suggesting that its share price is 95% less volatile than the S&P 500. Comparatively, Loblaw Companies has a beta of 0.288064, suggesting that its share price is 71% less volatile than the S&P 500.

Summary

Dollarama beats Loblaw Companies on 11 of the 18 factors compared between the two stocks.