Head-To-Head Review: Dollarama (DLMAF) vs. Its Rivals

Dollarama (OTCMKTS:DLMAF) is one of 143 publicly-traded companies in the “Broadline Retail” industry, but how does it compare to its peers? We will compare Dollarama to related companies based on the strength of its earnings, dividends, analyst recommendations, valuation, profitability, institutional ownership and risk.

Institutional & Insider Ownership

44.1% of shares of all “Broadline Retail” companies are owned by institutional investors. 23.8% of shares of all “Broadline Retail” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Dollarama	$5.21 billion	$940.70 million	48.14
Dollarama Competitors	$22.27 billion	$1.70 billion	-219.76

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

Profitability

This table compares Dollarama and its peers’ 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	-3.46%	-37.81%	-2.62%

Dividends

Dollarama pays an annual dividend of $0.34 per share and has a dividend yield of 0.3%. 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 32.8% and pay out 11.5% of their earnings in the form of a dividend. Dollarama lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Dollarama and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollarama	0	4	5	5	3.07
Dollarama Competitors	1379	5356	10781	303	2.56

As a group, “Broadline Retail” companies have a potential upside of 13.89%. Given Dollarama’s peers higher probable upside, analysts plainly believe Dollarama has less favorable growth aspects than its peers.

Summary

Dollarama peers 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.