MINISO vs Dollarama Which Is More Promising?

Miniso and Dollarama are both retail giants that offer affordable products to consumers, but they have distinct differences in their stock performances. Miniso, a Japanese designer brand known for its high-quality and trendy merchandise, has seen significant growth in the stock market in recent years. On the other hand, Dollarama, a Canadian dollar store chain, has faced challenges due to competition and changing consumer trends. Investors are closely watching the performance of these two retail giants to see which company will come out on top in the long run.

MINISO or Dollarama?

When comparing MINISO and Dollarama, 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 MINISO and Dollarama.

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. MINISO has a dividend yield of 0.32%, while Dollarama has a dividend yield of 0.25%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. MINISO reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Dollarama reports a 5-year dividend growth of -4.10% year and a payout ratio of 8.30%.

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 MINISO P/E ratio at 22.70 and Dollarama's P/E ratio at 36.35. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. MINISO P/B ratio is 5.66 while Dollarama's P/B ratio is 31.77.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, MINISO has seen a 5-year revenue growth of 0.57%, while Dollarama's is 0.81%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with MINISO's ROE at 26.48% and Dollarama's ROE at 135.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.89 for MINISO and $100.53 for Dollarama. Over the past year, MINISO's prices ranged from $12.51 to $25.50, with a yearly change of 103.84%. Dollarama's prices fluctuated between $67.34 and $109.74, with a yearly change of 62.96%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.