Dollarama vs MINISO Which Is More Reliable?

Dollarama and MINISO are two popular retail companies with contrasting business models. Dollarama is a Canadian chain known for its affordable everyday products, while MINISO is a Japanese brand that focuses on trendy and stylish merchandise. Both companies have seen success in their respective markets, but Dollarama has a longer track record of consistent growth and profitability. Investors may consider factors such as market trends, financial performance, and growth potential when evaluating the stocks of these two retailers.

Dollarama or MINISO?

When comparing Dollarama and MINISO, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Dollarama and MINISO.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Dollarama has a dividend yield of 0.19%, while MINISO has a dividend yield of 0.41%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Dollarama reports a 5-year dividend growth of -4.10% year and a payout ratio of 7.87%. On the other hand, MINISO reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Dollarama P/E ratio at 38.06 and MINISO's P/E ratio at 17.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Dollarama P/B ratio is 34.88 while MINISO's P/B ratio is 4.43.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Dollarama has seen a 5-year revenue growth of 0.81%, while MINISO's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dollarama's ROE at 187.36% and MINISO's ROE at 26.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $106.56 for Dollarama and $18.55 for MINISO. Over the past year, Dollarama's prices ranged from $67.34 to $109.66, with a yearly change of 62.85%. MINISO's prices fluctuated between $12.51 and $28.16, with a yearly change of 125.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.