Analyzing Canadian Tire (CDNTF) and The Competition

Valuation & Earnings

This table compares Canadian Tire and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Canadian Tire	N/A	N/A	20.80
Canadian Tire Competitors	$23.62 billion	$1.73 billion	-224.23

Canadian Tire’s peers have higher revenue and earnings than Canadian Tire. Canadian Tire 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.

Institutional & Insider Ownership

2.2% of Canadian Tire shares are owned by institutional investors. Comparatively, 44.5% of shares of all “Broadline Retail” companies are owned by institutional investors. 24.0% of shares of all “Broadline Retail” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Canadian Tire pays an annual dividend of $1.73 per share and has a dividend yield of 1.1%. Canadian Tire pays out 23.0% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 16.9% and pay out 11.5% of their earnings in the form of a dividend. Canadian Tire lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Canadian Tire and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Tire	N/A	N/A	N/A
Canadian Tire Competitors	-3.16%	-18.42%	-1.34%

Summary

Canadian Tire peers beat Canadian Tire on 5 of the 9 factors compared.

About Canadian Tire

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. It operates in three segments: Retail, CT REIT, and Financial Services. The Retail segment retails automotive maintenance products and accessories, parts, and tires, as well as automotive services and roadside assistance; electrical, hardware, home environment, paint, plumbing, and tool products; cleaning, food & drink, home décor, home essentials, home organization, kitchen, and pet care products; camping, exercise, hockey, hunting, fishing, seasonal recreation, and team sports and golf products; and backyard living, backyard fun, cycling, gardening, outdoor tools, seasonal, and toy products. This segment offers its products under the Canadian Tire, Canadian Tire Gas, Pro Hockey Life, Mark's, PartSource, Helly Hansen, Party City, and SportChek brand names. This segment also participates in loyalty programs, as well as sells its products online. The CT REIT segment operates as a closed-end real estate investment trust that holds a portfolio of properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, industrial properties, mixed-use commercial property, and development properties. The Financial Services segment provides consumer credit cards, in-store financing, insurance products, and retail and broker deposits; and savings accounts and guaranteed investment certificates. Canadian Tire Corporation, Limited was founded in 1922 and is headquartered in Toronto, Canada.