Dollarama (DOL) Competitors

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

Do insiders and institutionals believe in L or DOL?

12.5% of Loblaw Companies shares are held by institutional investors. Comparatively, 47.3% of Dollarama shares are held by institutional investors. 53.8% of Loblaw Companies shares are held by insiders. Comparatively, 2.2% of Dollarama shares are held by 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.

Is L or DOL a better dividend stock?

Loblaw Companies pays an annual dividend of C$0.53 per share and has a dividend yield of 1.0%. Dollarama pays an annual dividend of C$0.40 per share and has a dividend yield of 0.2%. Loblaw Companies pays out 26.1% of its earnings in the form of a dividend. Dollarama pays out 8.8% 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.

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%

Which has more risk & volatility, L or DOL?

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

Does the media refer more to L or DOL?

In the previous week, Loblaw Companies and Loblaw Companies both had 4 articles in the media. Dollarama's average media sentiment score of 0.07 beat Loblaw Companies' score of -0.25 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	0 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Neutral
Dollarama	0 Very Positive mention(s)	3 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has higher valuation and 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$62.29B	1.05	C$2.23B	C$2.02	27.34
Dollarama	C$6.69B	7.29	C$1.08B	C$4.51	39.17

Do analysts prefer L or DOL?

Loblaw Companies presently has a consensus price target of C$199.25, suggesting a potential upside of 261.29%. Dollarama has a consensus price target of C$201.00, suggesting a potential upside of 13.79%. Given Loblaw Companies' higher probable upside, 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)	2 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.75
Dollarama	0 Sell rating(s)	4 Hold rating(s)	6 Buy rating(s)	2 Strong Buy rating(s)	2.83

Summary

Dollarama beats Loblaw Companies on 11 of the 17 factors compared between the two stocks.