Dollar Tree (DLTR) vs. Its Rivals Head to Head Review

Dollar Tree (NASDAQ:DLTR) is one of 149 public companies in the “Consumer Staples Distribution & Retail” industry, but how does it contrast to its peers? We will compare Dollar Tree to similar companies based on the strength of its dividends, analyst recommendations, institutional ownership, earnings, valuation, profitability and risk.

Volatility & Risk

Dollar Tree has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Dollar Tree’s peers have a beta of 0.43, indicating that their average stock price is 57% less volatile than the S&P 500.

Institutional & Insider Ownership

97.4% of Dollar Tree shares are held by institutional investors. Comparatively, 45.0% of shares of all “Consumer Staples Distribution & Retail” companies are held by institutional investors. 7.1% of Dollar Tree shares are held by company insiders. Comparatively, 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Dollar Tree and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dollar Tree	$19.41 billion	$1.28 billion	16.92
Dollar Tree Competitors	$35.32 billion	$846.03 million	16.01

Dollar Tree’s peers have higher revenue, but lower earnings than Dollar Tree. Dollar Tree 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Dollar Tree and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollar Tree	2	13	11	0	2.35
Dollar Tree Competitors	2240	8261	10032	459	2.41

Dollar Tree presently has a consensus price target of $133.14, indicating a potential downside of 3.94%. As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 59.28%. Given Dollar Tree’s peers stronger consensus rating and higher possible upside, analysts clearly believe Dollar Tree has less favorable growth aspects than its peers.

Profitability

This table compares Dollar Tree and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dollar Tree	8.03%	38.61%	9.94%
Dollar Tree Competitors	-25.67%	1.90%	2.61%

Summary

Dollar Tree beats its peers on 7 of the 13 factors compared.

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.