Coles Group (OTCMKTS:CLEGF – Get Free Report) and Dollar Tree (NASDAQ:DLTR – Get Free Report) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Profitability
This table compares Coles Group and Dollar Tree’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Coles Group | N/A | N/A | N/A |
| Dollar Tree | 6.51% | 35.19% | 9.28% |
Institutional & Insider Ownership
97.4% of Dollar Tree shares are held by institutional investors. 7.1% of Dollar Tree shares are held by 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 and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Coles Group | N/A | N/A | N/A | N/A | N/A |
| Dollar Tree | $19.41 billion | 1.28 | $1.28 billion | $6.40 | 20.21 |
Dollar Tree has higher revenue and earnings than Coles Group.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Coles Group and Dollar Tree, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Coles Group | 0 | 1 | 0 | 0 | 2.00 |
| Dollar Tree | 4 | 12 | 10 | 0 | 2.23 |
Coles Group presently has a consensus price target of $23.00, suggesting a potential upside of 36.50%. Dollar Tree has a consensus price target of $122.82, suggesting a potential downside of 5.06%. Given Coles Group’s higher possible upside, equities research analysts clearly believe Coles Group is more favorable than Dollar Tree.
Summary
Dollar Tree beats Coles Group on 8 of the 9 factors compared between the two stocks.
About Coles Group
Coles Group Limited operates as a retailer in Australia. It operates through Supermarkets and Liquor segments. The company operates various supermarkets; and coles.com.au, which offers a choice of home delivery, including same-day, overnight drop and go services, and pick up from click and collect locations. Its Coles Financial Services provides insurance, credit cards, and personal loans to Australian families. The company is also involved in the retailing of liquor through its various stores under the Liquorland, First Choice, First Choice Liquor, and Vintage Cellars brand names. In addition, it operates as flybuys loyalty program. The company was formerly known as Coles Myer Ltd. and changed its name to Coles Group Limited. Coles Group Limited was founded in 1914 and is based in Hawthorn East, Australia.
About Dollar Tree
Dollar Tree, Inc. operates retail discount stores. The company operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, which includes everyday consumables, such as household paper and chemicals, food, candy, health, personal care products, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine's Day merchandise. It operates stores under the Dollar Tree and Dollar Tree Canada brands, as well as distribution centers in the United States and Canada. The Family Dollar segment operates general merchandise retail discount stores that offer consumable merchandise, which comprise food and beverages, tobacco, health and personal care, household chemicals, paper products, hardware and automotive supplies, diapers, batteries, and pet food and supplies; and home products, including housewares, home décor, and giftware, as well as domestics, such as comforters, sheets, and towels. It also provides apparel and accessories merchandise comprising clothing, fashion accessories, and shoes; and seasonal and electronics merchandise that include Christmas, Easter, Halloween, and Valentine's Day merchandise, as well as personal electronics, which comprise pre-paid cellular phones and services, stationery and school supplies, and toys. Dollar Tree, Inc. was founded in 1986 and is based in Chesapeake, Virginia.
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