Dollarama (DOL) Competitors

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

Which has more volatility and risk, L or DOL?

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

Does the media refer more to L or DOL?

In the previous week, Dollarama had 1 more articles in the media than Loblaw Companies. MarketBeat recorded 1 mentions for Dollarama and 0 mentions for Loblaw Companies. Dollarama's average media sentiment score of 0.13 beat Loblaw Companies' score of 0.13 indicating that Dollarama is being referred to more favorably in the news media.

Company	Overall Sentiment
Loblaw Companies	Neutral
Dollarama	Neutral

Do analysts rate L or DOL?

Loblaw Companies presently has a consensus price target of C$236.88, suggesting a potential upside of 5.26%. Dollarama has a consensus price target of C$186.36, suggesting a potential downside of 1.77%. Given Loblaw Companies' stronger consensus rating and higher probable upside, equities research 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)	4 Hold rating(s)	6 Buy rating(s)	2 Strong Buy rating(s)	2.83

Do insiders & institutionals believe in L or DOL?

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

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 preferable earnings and valuation, 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	8.65	C$1.08B	C$3.93	48.32

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.

Summary

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