DOL vs. L, ATD.B, ATD.A, WN, MRU, SAP, EMP.A, PRMW, PBH, and MFI
Should you be buying Dollarama stock or one of its competitors? The main competitors of Dollarama include Loblaw Companies (L), Alimentation Couche-Tard (ATD.B), Alimentation Couche-Tard (ATD.A), George Weston (WN), Metro (MRU), Saputo (SAP), Empire (EMP.A), Primo Water (PRMW), Premium Brands (PBH), and Maple Leaf Foods (MFI). These companies are all part of the "consumer defensive" sector.
Dollarama (TSE:DOL) and Loblaw Companies (TSE:L) are both large-cap consumer defensive companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, media sentiment, community ranking, dividends, valuation and earnings.
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.
Dollarama received 145 more outperform votes than Loblaw Companies when rated by MarketBeat users. However, 66.74% of users gave Loblaw Companies an outperform vote while only 63.09% of users gave Dollarama an outperform vote.
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.
Dollarama presently has a consensus price target of C$139.18, suggesting a potential upside of 4.27%. Loblaw Companies has a consensus price target of C$176.43, suggesting a potential downside of 2.24%. Given Dollarama's higher possible upside, equities analysts plainly believe Dollarama is more favorable than Loblaw Companies.
Dollarama has a net margin of 17.50% compared to Loblaw Companies' net margin of 3.46%. Dollarama's return on equity of 324.09% beat Loblaw Companies' return on equity.
In the previous week, Dollarama had 45 more articles in the media than Loblaw Companies. MarketBeat recorded 51 mentions for Dollarama and 6 mentions for Loblaw Companies. Dollarama's average media sentiment score of 0.69 beat Loblaw Companies' score of 0.22 indicating that Dollarama is being referred to more favorably in the media.
44.6% of Dollarama shares are held by institutional investors. Comparatively, 21.0% of Loblaw Companies shares are held by institutional investors. 2.2% of Dollarama shares are held by company insiders. Comparatively, 53.5% of Loblaw Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Dollarama pays an annual dividend of C$0.37 per share and has a dividend yield of 0.3%. Loblaw Companies pays an annual dividend of C$2.05 per share and has a dividend yield of 1.1%. Dollarama pays out 10.0% of its earnings in the form of a dividend. Loblaw Companies pays out 31.1% 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.
Summary
Dollarama beats Loblaw Companies on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DOL and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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