Metro (MRU) Competitors

Metro (TSE:MRU) and Loblaw Companies (TSE:L) 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 valuation, risk, earnings, dividends, analyst recommendations, institutional ownership, profitability and media sentiment.

Which has more volatility and risk, MRU or L?

Metro has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, Loblaw Companies has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Which has higher valuation & earnings, MRU or L?

Loblaw Companies has higher revenue and earnings than Metro. Metro is trading at a lower price-to-earnings ratio than Loblaw Companies, 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
Metro	C$21.29B	1.09	C$957.36M	C$4.33	24.32
Loblaw Companies	C$60.23B	1.14	C$2.23B	C$7.37	30.87

Is MRU or L a better dividend stock?

Metro pays an annual dividend of C$1.34 per share and has a dividend yield of 1.3%. Loblaw Companies pays an annual dividend of C$2.05 per share and has a dividend yield of 0.9%. Metro pays out 30.9% 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.

Does the media favor MRU or L?

In the previous week, Metro had 13 more articles in the media than Loblaw Companies. MarketBeat recorded 16 mentions for Metro and 3 mentions for Loblaw Companies. Loblaw Companies' average media sentiment score of 0.44 beat Metro's score of 0.44 indicating that Loblaw Companies is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Metro	3 Very Positive mention(s)	3 Positive mention(s)	4 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
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

Is MRU or L more profitable?

Metro has a net margin of 4.50% compared to Loblaw Companies' net margin of 3.71%. Loblaw Companies' return on equity of 19.90% beat Metro's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Metro	4.50%	13.80%	6.40%
Loblaw Companies	3.71%	19.90%	5.89%

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

46.8% of Metro shares are held by institutional investors. Comparatively, 20.7% of Loblaw Companies shares are held by institutional investors. 0.1% of Metro shares are held by company insiders. Comparatively, 53.8% of Loblaw Companies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Do analysts prefer MRU or L?

Metro currently has a consensus target price of C$107.44, suggesting a potential upside of 1.97%. Loblaw Companies has a consensus target price of C$244.50, suggesting a potential upside of 7.51%. Given Loblaw Companies' stronger consensus rating and higher probable upside, analysts clearly believe Loblaw Companies is more favorable than Metro.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metro	0 Sell rating(s)	4 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.43
Loblaw Companies	0 Sell rating(s)	2 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.75

Summary

Loblaw Companies beats Metro on 13 of the 18 factors compared between the two stocks.