Head-To-Head Comparison: Dollarama (DLMAF) and Its Competitors

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

Insider & Institutional 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 insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

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	-3.41%	-37.84%	-2.63%

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 28.5% 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 & 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	47.55
Dollarama Competitors	$54.68 billion	$1.70 billion	-219.72

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 Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollarama	0	4	5	5	3.07
Dollarama Competitors	1376	5350	10770	300	2.56

As a group, “Broadline Retail” companies have a potential upside of 14.17%. Given Dollarama’s rivals higher possible upside, analysts plainly believe Dollarama has less favorable growth aspects than its rivals.

Summary

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

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.