Dollarama (DOL) Competitors

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

Which has higher valuation & earnings, L or DOL?

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
Loblaw Companies	C$60.23B	1.13	C$2.23B	C$7.37	30.54
Dollarama	C$6.06B	7.86	C$1.08B	C$3.93	43.90

Is L or DOL 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
Loblaw Companies	3.71%	19.90%	5.89%
Dollarama	17.85%	135.38%	16.58%

Is L or DOL a better dividend stock?

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

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

20.7% of Loblaw Companies shares are held by institutional investors. Comparatively, 44.9% of Dollarama shares are held by institutional investors. 53.8% of Loblaw Companies shares are held by company insiders. Comparatively, 2.2% of Dollarama shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Does the MarketBeat Community believe in L or DOL?

Dollarama received 142 more outperform votes than Loblaw Companies when rated by MarketBeat users. However, 66.16% of users gave Loblaw Companies an outperform vote while only 62.33% of users gave Dollarama an outperform vote.

Company	Underperform	Outperform
Loblaw Companies	Outperform Votes 649 66.16%	Underperform Votes 332 33.84%
Dollarama	Outperform Votes 791 62.33%	Underperform Votes 478 37.67%

Does the media prefer L or DOL?

In the previous week, Loblaw Companies had 2 more articles in the media than Dollarama. MarketBeat recorded 5 mentions for Loblaw Companies and 3 mentions for Dollarama. Dollarama's average media sentiment score of 0.55 beat Loblaw Companies' score of -0.11 indicating that Dollarama is being referred to more favorably in the news media.

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

Which has more volatility & risk, L or DOL?

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

Do analysts rate L or DOL?

Loblaw Companies presently has a consensus price target of C$236.88, suggesting a potential upside of 5.27%. Dollarama has a consensus price target of C$164.50, suggesting a potential downside of 4.56%. Given Loblaw Companies' stronger consensus rating and higher possible upside, equities analysts clearly believe Loblaw Companies is more favorable than Dollarama.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loblaw Companies	0 Sell rating(s)	1 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.86
Dollarama	0 Sell rating(s)	6 Hold rating(s)	7 Buy rating(s)	2 Strong Buy rating(s)	2.73

Summary

Dollarama beats Loblaw Companies on 12 of the 21 factors compared between the two stocks.