Analyzing Dollarama (DLMAF) & Its Competitors

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

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

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Dollarama	$5.21 billion	$940.70 million	48.14
Dollarama Competitors	$23.48 billion	$1.70 billion	-219.76

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.

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	-3.47%	-37.83%	-2.63%

Analyst Recommendations

This is a breakdown of current ratings for Dollarama and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollarama	0	4	5	5	3.07
Dollarama Competitors	1378	5355	10774	303	2.56

As a group, “Broadline Retail” companies have a potential upside of 13.05%. Given Dollarama’s rivals higher possible upside, analysts clearly believe Dollarama has less favorable growth aspects than its rivals.

Dividends

Dollarama pays an annual dividend of $0.33 per share and has a dividend yield of 0.3%. Dollarama pays out 12.5% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 17.7% and pay out 12.3% 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.

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.