Head to Head Analysis: Dollarama (DLMAF) versus Its Rivals

Dollarama (OTCMKTS:DLMAF) is one of 142 public companies in the “Broadline Retail” industry, but how does it compare to its rivals? We will compare Dollarama to similar businesses based on the strength of its earnings, dividends, analyst recommendations, institutional ownership, profitability, valuation and risk.

Dividends

Dollarama pays an annual dividend of $0.34 per share and has a dividend yield of 0.2%. Dollarama pays out 12.9% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 28.8% and pay out 11.5% of their earnings in the form of a dividend. Dollarama lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Dollarama and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dollarama	$5.21 billion	$940.70 million	51.96
Dollarama Competitors	$43.56 billion	$1.73 billion	-220.64

Dollarama’s rivals have higher revenue and earnings than Dollarama. Dollarama is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Dollarama and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollarama	0	4	5	4	3.00
Dollarama Competitors	1356	5322	10707	295	2.56

As a group, “Broadline Retail” companies have a potential upside of 13.22%. Given Dollarama’s rivals higher probable upside, analysts clearly believe Dollarama has less favorable growth aspects than its rivals.

Profitability

This table compares Dollarama and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dollarama	17.65%	94.77%	17.12%
Dollarama Competitors	-3.17%	-34.71%	-1.48%

Insider and Institutional Ownership

44.4% of shares of all “Broadline Retail” companies are held by institutional investors. 24.0% of shares of all “Broadline Retail” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Dollarama rivals beat Dollarama on 8 of the 14 factors compared.

Dollarama Company Profile

Dollarama Inc. operates a chain of dollar stores in Canada. Its stores offer general merchandise, consumables, and seasonal products. It also sells its products through online store. The company was formerly known as Dollarama Capital Corporation and changed its name to Dollarama Inc. in September 2009. Dollarama Inc. was founded in 1992 and is headquartered in Mount Royal, Canada.