Head to Head Analysis: Dollarama (DLMAF) & Its Competitors

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

Profitability

This table compares Dollarama and its competitors’ 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	-3.45%	-36.11%	-2.58%

Analyst Recommendations

This is a summary of current ratings for Dollarama and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollarama	0	4	5	5	3.07
Dollarama Competitors	1372	5338	10757	298	2.56

As a group, “Broadline Retail” companies have a potential upside of 14.13%. Given Dollarama’s competitors higher possible upside, analysts clearly believe Dollarama has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

44.1% of shares of all “Broadline Retail” companies are held by institutional investors. 23.8% of shares of all “Broadline Retail” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Dollarama	$5.21 billion	$940.70 million	51.20
Dollarama Competitors	$42.09 billion	$1.70 billion	-219.65

Dollarama’s competitors have higher revenue and earnings than Dollarama. Dollarama is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

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 32.4% and pay out 11.5% of their earnings in the form of a dividend. Dollarama lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Dollarama competitors 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.