Dollarama (DOL) Competitors

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

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%

Do analysts recommend DOL or L?

Dollarama currently has a consensus target price of C$186.36, suggesting a potential downside of 0.74%. Loblaw Companies has a consensus target price of C$237.00, suggesting a potential upside of 7.32%. 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)	2 Strong Buy rating(s)	2.83
Loblaw Companies	0 Sell rating(s)	1 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.86

Do institutionals and insiders hold more shares of DOL or L?

44.9% of Dollarama shares are owned by institutional investors. Comparatively, 20.7% of Loblaw Companies shares are owned by institutional investors. 2.2% of Dollarama shares are owned by insiders. Comparatively, 53.8% of Loblaw Companies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Which has more volatility & risk, DOL or L?

Dollarama has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Loblaw Companies has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500.

Does the media favor DOL or L?

In the previous week, Loblaw Companies had 2 more articles in the media than Dollarama. MarketBeat recorded 4 mentions for Loblaw Companies and 2 mentions for Dollarama. Dollarama's average media sentiment score of 0.64 beat Loblaw Companies' score of -0.21 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)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Loblaw Companies	1 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has stronger valuation and 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$6.06B	8.56	C$1.08B	C$3.93	47.82
Loblaw Companies	C$60.23B	1.11	C$2.23B	C$7.37	29.98

Is DOL or L a better dividend stock?

Dollarama pays an annual dividend of C$0.37 per share and has a dividend yield of 0.2%. Loblaw Companies pays an annual dividend of C$2.05 per share and has a dividend yield of 0.9%. Dollarama pays out 9.4% of its earnings in the form of a dividend. Loblaw Companies pays out 27.8% 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.

Summary

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