Canadian Tire (OTCMKTS:CDNAF) & Alimentation Couche-Tard (OTCMKTS:ANCTF) Head to Head Analysis

Canadian Tire (OTCMKTS:CDNAFGet Free Report) and Alimentation Couche-Tard (OTCMKTS:ANCTFGet Free Report) are both consumer cyclical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Canadian Tire and Alimentation Couche-Tard, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canadian Tire 0 2 2 0 2.50
Alimentation Couche-Tard 0 0 1 0 3.00

Canadian Tire currently has a consensus target price of $201.29, indicating a potential upside of 80.58%. Given Canadian Tire’s higher probable upside, equities research analysts clearly believe Canadian Tire is more favorable than Alimentation Couche-Tard.

Profitability

This table compares Canadian Tire and Alimentation Couche-Tard’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canadian Tire N/A N/A N/A
Alimentation Couche-Tard N/A N/A N/A

Dividends

Canadian Tire pays an annual dividend of $1.73 per share and has a dividend yield of 1.5%. Alimentation Couche-Tard pays an annual dividend of $0.42 per share and has a dividend yield of 0.8%. Canadian Tire pays out 23.0% of its earnings in the form of a dividend. Alimentation Couche-Tard pays out 27.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Canadian Tire is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

26.7% of Canadian Tire shares are held by institutional investors. Comparatively, 6.7% of Alimentation Couche-Tard shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Canadian Tire and Alimentation Couche-Tard’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Canadian Tire N/A N/A N/A $7.48 14.89
Alimentation Couche-Tard N/A N/A N/A $1.55 33.68

Canadian Tire is trading at a lower price-to-earnings ratio than Alimentation Couche-Tard, indicating that it is currently the more affordable of the two stocks.

Summary

Canadian Tire beats Alimentation Couche-Tard on 6 of the 8 factors compared between the two stocks.

About Canadian Tire

(Get Free Report)

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. It operates in three segments: Retail, CT REIT, and Financial Services. The Retail segment retails automotive maintenance products and accessories, parts, tires as well as automotive services and roadside assistance; kitchen, home organization, decor, home electronics, pet, and cleaning and consumable products; tools, hardware, paint, electrical, plumbing, home environment, and smart home products; and outdoor recreation, exercise, footwear and apparel, hunting, fishing, camping, and sporting goods. It also retails Christmas trees, lights and decor, Halloween d├ęcor and costumes, yard care and maintenance, and snow removal equipment; patio furniture, barbeques, pools, trampolines, outdoor power equipment and tools, plants and gardening supplies; backyard amusement, pool fun, and toys and games; gasoline; sporting goods and active wear; casual and industrial apparel and footwear; and outerwear, base-layer, and workwear. This segment offers its products under the Canadian Tire, Pro Hockey Life, Mark's, PartSource, Helly Hansen, Party City, Petroleum, and SportChek brand names. This segment also participates in loyalty programs, as well as sells its products online. The CT REIT segment operates as a closed-end real estate investment trust that holds a portfolio of 373 properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, industrial properties, a mixed-use commercial property, and development properties. The Financial Services segment provides financial and other ancillary products and services, including consumer credit cards, in-store financing, insurance products, and retail and broker deposits; and savings accounts and guaranteed investment certificates. Canadian Tire Corporation, Limited was founded in 1922 and is headquartered in Toronto, Canada.

About Alimentation Couche-Tard

(Get Free Report)

Alimentation Couche-Tard Inc. operates and licenses convenience stores in North America, Europe, and Asia. Its convenience stores sell tobacco products and alternative tobacco products, grocery items, candies and snacks, beer, wine, beverages, and fresh food offerings; road transportation fuels and electric vehicle charging solutions; and aviation fuels, as well as energy for stationary engines. The company operates its convenience stores chain under the Circle K, Couche-Tard, Holiday, Ingo, and Mac's brands. It is also involved in the sale of lottery tickets, calling and gift cards, postage stamps, and bus tickets; and provision of automatic teller machines and car wash services. In addition, it operates and licenses stores operated under the Circle K banner in Cambodia, Egypt, Guam, Guatemala, Honduras, Indonesia, Jamaica, Macau, Mexico, New Zealand, Saudi Arabia, the United Arab Emirates, and Vietnam. The company was formerly known as Actidev Inc. and changed its name to Alimentation Couche-Tard Inc. in December 1994. Alimentation Couche-Tard Inc. was founded in 1980 and is headquartered in Laval, Canada.

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