CTC vs. LNF, ZZZ, GBT, CLIQ, IDG, RUM, FTI, LXR, BKS, and GPC
Should you be buying Canadian Tire stock or one of its competitors? The main competitors of Canadian Tire include Leon's Furniture (LNF), Sleep Country Canada (ZZZ), BMTC Group (GBT), Alcanna (CLIQ), Indigo Books & Music (IDG), Rocky Mountain Liquor (RUM), FTI Foodtech International (FTI), LXRandCo (LXR), Berkley Renewables (BKS), and Genuine Parts (GPC). These companies are all part of the "specialty retail" industry.
Canadian Tire (TSE:CTC) and Leon's Furniture (TSE:LNF) are both small-cap consumer cyclical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, community ranking, valuation, risk, earnings, profitability, media sentiment and institutional ownership.
Canadian Tire received 114 more outperform votes than Leon's Furniture when rated by MarketBeat users. Likewise, 77.90% of users gave Canadian Tire an outperform vote while only 59.87% of users gave Leon's Furniture an outperform vote.
Canadian Tire pays an annual dividend of C$7.00 per share and has a dividend yield of 3.1%. Leon's Furniture pays an annual dividend of C$0.72 per share and has a dividend yield of 3.3%. Canadian Tire pays out 138.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Leon's Furniture pays out 34.3% of its earnings in the form of a dividend. Leon's Furniture is clearly the better dividend stock, given its higher yield and lower payout ratio.
Canadian Tire has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Leon's Furniture has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
12.3% of Canadian Tire shares are held by institutional investors. Comparatively, 5.8% of Leon's Furniture shares are held by institutional investors. 81.9% of Canadian Tire shares are held by insiders. Comparatively, 69.5% of Leon's Furniture shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Leon's Furniture has a net margin of 5.78% compared to Canadian Tire's net margin of 1.71%. Leon's Furniture's return on equity of 14.67% beat Canadian Tire's return on equity.
Canadian Tire has higher revenue and earnings than Leon's Furniture. Leon's Furniture is trading at a lower price-to-earnings ratio than Canadian Tire, indicating that it is currently the more affordable of the two stocks.
Leon's Furniture has a consensus target price of C$24.00, indicating a potential upside of 9.84%. Given Leon's Furniture's higher possible upside, analysts clearly believe Leon's Furniture is more favorable than Canadian Tire.
In the previous week, Canadian Tire and Canadian Tire both had 2 articles in the media. Leon's Furniture's average media sentiment score of 0.17 beat Canadian Tire's score of -0.23 indicating that Leon's Furniture is being referred to more favorably in the news media.
Summary
Canadian Tire beats Leon's Furniture on 9 of the 17 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CTC 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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