Dollarama vs Walmart Which Is More Attractive?

Dollarama and Walmart are two popular retailers that cater to different segments of the market. Dollarama is known for offering a wide range of products at affordable prices, while Walmart is a one-stop shop for everyday needs. Both companies have seen success in the stock market, with Dollarama's focus on discount shopping and Walmart's strong presence in the retail industry. Investors may consider factors such as market trends, financial performance, and growth potential when comparing Dollarama and Walmart stocks.

Dollarama or Walmart?

When comparing Dollarama and Walmart, 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 Walmart.

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 Walmart has a dividend yield of 0.96%. 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, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 41.18%.

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 38.21 and Walmart's P/E ratio at 43.58. 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 35.03 while Walmart's P/B ratio is 8.03.

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 Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dollarama's ROE at 187.36% and Walmart's ROE at 18.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $104.50 for Dollarama and $83.94 for Walmart. Over the past year, Dollarama's prices ranged from $67.34 to $109.74, with a yearly change of 62.96%. Walmart's prices fluctuated between $49.85 and $85.79, with a yearly change of 72.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.