CTC.A vs. GIL, BYD, LNR, DOO, ATZ, CCL.B, WPK, RCH, MG, and QSR
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), CCL Industries (CCL.B), Winpak (WPK), Richelieu Hardware (RCH), Magna International (MG), and Restaurant Brands International (QSR). 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 stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership, community ranking, profitability and media sentiment.
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 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 1.63, suggesting that its share price is 63% more volatile than the S&P 500.
Gildan Activewear has a net margin of 16.14% compared to Canadian Tire's net margin of 1.71%. Gildan Activewear's return on equity of 26.88% beat Canadian Tire's return on equity.
In the previous week, Gildan Activewear had 5 more articles in the media than Canadian Tire. MarketBeat recorded 12 mentions for Gildan Activewear and 7 mentions for Canadian Tire. Canadian Tire's average media sentiment score of 0.94 beat Gildan Activewear's score of -0.14 indicating that Canadian Tire is being referred to more favorably in the media.
Canadian Tire pays an annual dividend of C$7.00 per share and has a dividend yield of 5.3%. Gildan Activewear pays an annual dividend of C$1.13 per share and has a dividend yield of 2.2%. Canadian Tire pays out 139.2% 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 28.0% of its earnings in the form of a dividend.
Canadian Tire currently has a consensus price target of C$144.63, indicating a potential upside of 8.33%. Gildan Activewear has a consensus price target of C$46.80, indicating a potential downside of 7.51%. Given Canadian Tire's higher probable upside, equities research analysts clearly believe Canadian Tire is more favorable than Gildan Activewear.
Canadian Tire received 59 more outperform votes than Gildan Activewear when rated by MarketBeat users. However, 77.00% of users gave Gildan Activewear an outperform vote while only 65.18% of users gave Canadian Tire an outperform vote.
32.1% of Canadian Tire shares are owned by institutional investors. Comparatively, 87.1% of Gildan Activewear shares are owned by institutional investors. 1.9% of Canadian Tire shares are owned by company insiders. Comparatively, 2.2% of Gildan Activewear shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Gildan Activewear beats Canadian Tire on 13 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.
CTC.A vs. The Competition
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