Dollarama (DOL) Competitors

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

Which has higher earnings & valuation, DOL or L?

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
Dollarama	C$6.06B	7.63	C$1.08B	C$3.93	42.64
Loblaw Companies	C$60.23B	1.05	C$2.23B	C$7.37	28.52

Does the MarketBeat Community believe in DOL or L?

Dollarama received 146 more outperform votes than Loblaw Companies when rated by MarketBeat users. However, 66.29% of users gave Loblaw Companies an outperform vote while only 62.33% of users gave Dollarama an outperform vote.

Company	Underperform	Outperform
Dollarama	Outperform Votes 791 62.33%	Underperform Votes 478 37.67%
Loblaw Companies	Outperform Votes 645 66.29%	Underperform Votes 328 33.71%

Is DOL or L a better dividend stock?

Dollarama pays an annual dividend of C$0.37 per share and has a dividend yield of 0.2%. Loblaw Companies pays an annual dividend of C$2.05 per share and has a dividend yield of 1.0%. Dollarama pays out 9.4% 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.

Is DOL or L 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
Dollarama	17.85%	135.38%	16.58%
Loblaw Companies	3.71%	19.90%	5.89%

Which has more volatility & risk, DOL or L?

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

Do institutionals & insiders have more ownership in DOL or L?

44.9% of Dollarama shares are held by institutional investors. Comparatively, 20.7% of Loblaw Companies shares are held by institutional investors. 2.2% of Dollarama 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.

Does the media favor DOL or L?

In the previous week, Loblaw Companies had 3 more articles in the media than Dollarama. MarketBeat recorded 13 mentions for Loblaw Companies and 10 mentions for Dollarama. Loblaw Companies' average media sentiment score of 0.78 beat Dollarama's score of 0.50 indicating that Loblaw Companies is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Dollarama	1 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
Loblaw Companies	2 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts recommend DOL or L?

Dollarama presently has a consensus target price of C$164.50, suggesting a potential downside of 1.74%. Loblaw Companies has a consensus target price of C$204.88, suggesting a potential downside of 2.51%. Given Dollarama's higher probable upside, analysts clearly believe Dollarama is more favorable than Loblaw Companies.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollarama	0 Sell rating(s)	6 Hold rating(s)	7 Buy rating(s)	2 Strong Buy rating(s)	2.73
Loblaw Companies	0 Sell rating(s)	1 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.86

Summary

Dollarama beats Loblaw Companies on 12 of the 21 factors compared between the two stocks.