DOL vs. ATD.B, ATD.A, L, WN, MRU, SAP, PRMW, EMP.A, PBH, and MFI
Should you be buying Dollarama stock or one of its competitors? The main competitors of Dollarama include Alimentation Couche-Tard (ATD.B), Alimentation Couche-Tard (ATD.A), Loblaw Companies (L), George Weston (WN), Metro (MRU), Saputo (SAP), Primo Water (PRMW), Empire (EMP.A), Premium Brands (PBH), and Maple Leaf Foods (MFI). These companies are all part of the "consumer defensive" sector.
Dollarama (TSE:DOL) and Alimentation Couche-Tard (TSE:ATD.B) are both large-cap consumer defensive companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, media sentiment, community ranking, dividends, valuation and earnings.
Dollarama received 266 more outperform votes than Alimentation Couche-Tard when rated by MarketBeat users. However, 74.01% of users gave Alimentation Couche-Tard an outperform vote while only 63.41% of users gave Dollarama an outperform vote.
Dollarama has a net margin of 17.22% compared to Alimentation Couche-Tard's net margin of 0.00%. Dollarama's return on equity of 493.80% beat Alimentation Couche-Tard's return on equity.
46.6% of Dollarama shares are held by institutional investors. 2.9% of Dollarama shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Dollarama presently has a consensus target price of C$111.45, suggesting a potential downside of 13.60%. Alimentation Couche-Tard has a consensus target price of C$81.67, suggesting a potential upside of ∞. Given Alimentation Couche-Tard's stronger consensus rating and higher probable upside, analysts plainly believe Alimentation Couche-Tard is more favorable than Dollarama.
In the previous week, Dollarama had 16 more articles in the media than Alimentation Couche-Tard. MarketBeat recorded 16 mentions for Dollarama and 0 mentions for Alimentation Couche-Tard. Dollarama's average media sentiment score of 0.41 beat Alimentation Couche-Tard's score of 0.00 indicating that Dollarama is being referred to more favorably in the media.
Alimentation Couche-Tard has higher revenue and earnings than Dollarama. Alimentation Couche-Tard is trading at a lower price-to-earnings ratio than Dollarama, indicating that it is currently the more affordable of the two stocks.
Dollarama pays an annual dividend of C$0.30 per share and has a dividend yield of 0.2%. Alimentation Couche-Tard pays an annual dividend of C$0.28 per share. Dollarama pays out 8.4% of its earnings in the form of a dividend. Alimentation Couche-Tard pays out 8.9% 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. Dollarama is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Dollarama beats Alimentation Couche-Tard on 13 of the 18 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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