Reviewing Coles Group (OTCMKTS:CLEGF) & Dollar Tree (NASDAQ:DLTR)

Dollar Tree (NASDAQ:DLTR) and Coles Group (OTCMKTS:CLEGF) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Earnings & Valuation

This table compares Dollar Tree and Coles Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dollar Tree	$19.41 billion	1.28	$1.28 billion	$6.40	20.26
Coles Group	N/A	N/A	N/A	N/A	N/A

Dollar Tree has higher revenue and earnings than Coles Group.

Profitability

This table compares Dollar Tree and Coles Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dollar Tree	6.51%	35.19%	9.28%
Coles Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Dollar Tree and Coles Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollar Tree	4	12	10	0	2.23
Coles Group	0	1	0	0	2.00

Dollar Tree currently has a consensus target price of $122.95, suggesting a potential downside of 5.19%. Coles Group has a consensus target price of $23.00, suggesting a potential upside of 36.50%. Given Coles Group’s higher possible upside, analysts plainly believe Coles Group is more favorable than Dollar Tree.

Insider and Institutional Ownership

97.4% of Dollar Tree shares are held by institutional investors. 7.1% of Dollar Tree shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Dollar Tree beats Coles Group on 8 of the 9 factors compared between the two stocks.

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.

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.