Dollarama (DLMAF) vs. The Competition Critical Comparison

Dollarama (OTCMKTS:DLMAF) is one of 142 publicly-traded companies in the “Broadline Retail” industry, but how does it weigh in compared to its peers? We will compare Dollarama to related businesses based on the strength of its earnings, dividends, profitability, analyst recommendations, risk, institutional ownership and valuation.

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	-3.13%	-18.30%	-1.26%

Analyst Ratings

This is a summary of recent ratings and target prices 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	4	3.00
Dollarama Competitors	1349	5301	10679	294	2.56

As a group, “Broadline Retail” companies have a potential upside of 12.38%. Given Dollarama’s peers higher probable upside, analysts clearly believe Dollarama has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Dollarama and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dollarama	$5.21 billion	$940.70 million	52.19
Dollarama Competitors	$35.38 billion	$1.73 billion	-222.43

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.

Insider and Institutional Ownership

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 stock will outperform the market over the long term.

Dividends

Dollarama pays an annual dividend of $0.34 per share and has a dividend yield of 0.2%. 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 30.5% 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.

Summary

Dollarama peers 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.