Dollarama (DOL) Competitors

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

Do insiders and institutionals believe in DOL or L?

47.7% of Dollarama shares are held by institutional investors. Comparatively, 7.9% of Loblaw Companies shares are held by institutional investors. 2.2% of Dollarama shares are held by insiders. Comparatively, 53.8% of Loblaw Companies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Does the media prefer DOL or L?

In the previous week, Loblaw Companies had 5 more articles in the media than Dollarama. MarketBeat recorded 7 mentions for Loblaw Companies and 2 mentions for Dollarama. Dollarama's average media sentiment score of 0.86 beat Loblaw Companies' score of 0.10 indicating that Dollarama is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Dollarama	1 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Loblaw Companies	0 Very Positive mention(s)	1 Positive mention(s)	6 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has higher valuation & earnings, 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	7.73	C$1.08B	C$4.51	41.52
Loblaw Companies	C$62.29B	1.02	C$2.23B	C$2.02	26.57

Do analysts recommend DOL or L?

Dollarama presently has a consensus price target of C$199.42, indicating a potential upside of 6.50%. Loblaw Companies has a consensus price target of C$199.25, indicating a potential upside of 271.74%. Given Loblaw Companies' stronger consensus rating and higher possible upside, analysts plainly 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)	1 Strong Buy rating(s)	2.73
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 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 1.0%. 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.

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%

Which has more volatility & risk, DOL or L?

Dollarama has a beta of 0.130384, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, Loblaw Companies has a beta of 0.423253, indicating that its share price is 58% less volatile than the S&P 500.

Summary

Dollarama beats Loblaw Companies on 10 of the 18 factors compared between the two stocks.