CTC.A vs. GIL, BYD, LNR, DOO, ATZ, WPK, CCL.B, RCH, MG, and LNF
Should you be buying Canadian Tire stock or one of its competitors? The main competitors of Canadian Tire include Gildan Activewear (GIL), Boyd Group Services (BYD), Linamar (LNR), BRP (DOO), Aritzia (ATZ), Winpak (WPK), CCL Industries (CCL.B), Richelieu Hardware (RCH), Magna International (MG), and Leon's Furniture (LNF). These companies are all part of the "consumer cyclical" sector.
Canadian Tire (TSE:CTC.A) and Gildan Activewear (TSE:GIL) are both mid-cap consumer cyclical companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, community ranking, media sentiment, institutional ownership, dividends, valuation and risk.
Canadian Tire has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Gildan Activewear has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.
Gildan Activewear has lower revenue, but higher earnings than Canadian Tire. Gildan Activewear is trading at a lower price-to-earnings ratio than Canadian Tire, indicating that it is currently the more affordable of the two stocks.
Canadian Tire pays an annual dividend of C$7.00 per share and has a dividend yield of 5.1%. Gildan Activewear pays an annual dividend of C$1.10 per share and has a dividend yield of 2.4%. Canadian Tire pays out 185.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gildan Activewear pays out 26.7% of its earnings in the form of a dividend.
In the previous week, Gildan Activewear had 10 more articles in the media than Canadian Tire. MarketBeat recorded 15 mentions for Gildan Activewear and 5 mentions for Canadian Tire. Gildan Activewear's average media sentiment score of 0.82 beat Canadian Tire's score of -0.41 indicating that Gildan Activewear is being referred to more favorably in the news media.
Canadian Tire presently has a consensus price target of C$142.63, suggesting a potential upside of 4.40%. Gildan Activewear has a consensus price target of C$47.00, suggesting a potential upside of 3.96%. Given Canadian Tire's higher possible upside, analysts clearly believe Canadian Tire is more favorable than Gildan Activewear.
Gildan Activewear has a net margin of 16.70% compared to Canadian Tire's net margin of 1.28%. Gildan Activewear's return on equity of 27.79% beat Canadian Tire's return on equity.
Canadian Tire received 60 more outperform votes than Gildan Activewear when rated by MarketBeat users. However, 76.96% of users gave Gildan Activewear an outperform vote while only 65.77% of users gave Canadian Tire an outperform vote.
32.5% of Canadian Tire shares are held by institutional investors. Comparatively, 89.9% of Gildan Activewear shares are held by institutional investors. 2.9% of Canadian Tire shares are held by company insiders. Comparatively, 2.0% of Gildan Activewear shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Gildan Activewear beats Canadian Tire on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CTC.A and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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