Dollarama (OTCMKTS:DLMAF) and NextMart (OTCMKTS:NXMR) Critical Analysis

Dollarama (OTCMKTS:DLMAF) and NextMart (OTCMKTS:NXMR) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

This table compares Dollarama and NextMart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dollarama	17.65%	94.77%	17.12%
NextMart	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Dollarama and NextMart, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollarama	0	4	5	4	3.00
NextMart	0	0	0	0	0.00

Given NextMart’s higher possible upside, analysts plainly believe NextMart is more favorable than Dollarama.

Valuation and Earnings

This table compares Dollarama and NextMart”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dollarama	$5.21 billion	7.11	$940.70 million	$2.64	52.11
NextMart	N/A	N/A	N/A	N/A	N/A

Dollarama has higher revenue and earnings than NextMart.

Summary

Dollarama beats NextMart on 7 of the 8 factors compared between the two stocks.

About Dollarama

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.

About NextMart

NextMart, Inc. does not have significant operations. Previously, it was involved in the art event and art media direct marketing; art-themed products design and marketing; and art themed real estate development businesses. The company was incorporated in 1972 and is based in Scottsdale, Arizona.