Canadian Tire (OTCMKTS:CDNAF) and Canadian Tire (OTCMKTS:CDNTF) Critical Analysis

Canadian Tire (OTCMKTS:CDNAF – Get Free Report) and Canadian Tire (OTCMKTS:CDNTF – Get Free Report) are both consumer cyclical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Insider and Institutional Ownership

2.2% of Canadian Tire shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Canadian Tire and Canadian Tire, as reported by MarketBeat.

Canadian Tire currently has a consensus price target of $205.00, suggesting a potential upside of 54.18%. Given Canadian Tire’s stronger consensus rating and higher probable upside, research analysts plainly believe Canadian Tire is more favorable than Canadian Tire.

Dividends

Canadian Tire pays an annual dividend of $5.30 per share and has a dividend yield of 4.0%. Canadian Tire pays an annual dividend of $1.73 per share and has a dividend yield of 0.9%. Canadian Tire pays out 113.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Canadian Tire pays out 23.0% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Canadian Tire and Canadian Tire”s gross revenue, earnings per share and valuation.

Canadian Tire has higher revenue and earnings than Canadian Tire. Canadian Tire is trading at a lower price-to-earnings ratio than Canadian Tire, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Summary

Canadian Tire beats Canadian Tire on 9 of the 12 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, and tires, as well as automotive services and roadside assistance; electrical, hardware, home environment, paint, plumbing, and tool products; cleaning, food & drink, home décor, home essentials, home organization, kitchen, and pet care products; camping, exercise, hockey, hunting, fishing, seasonal recreation, and team sports and golf products; and backyard living, backyard fun, cycling, gardening, outdoor tools, seasonal, and toy products. This segment offers its products under the Canadian Tire, Canadian Tire Gas, Pro Hockey Life, Mark's, PartSource, Helly Hansen, Party City, 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 properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, industrial properties, mixed-use commercial property, and development properties. The Financial Services segment provides 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 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, and tires, as well as automotive services and roadside assistance; electrical, hardware, home environment, paint, plumbing, and tool products; cleaning, food & drink, home décor, home essentials, home organization, kitchen, and pet care products; camping, exercise, hockey, hunting, fishing, seasonal recreation, and team sports and golf products; and backyard living, backyard fun, cycling, gardening, outdoor tools, seasonal, and toy products. This segment offers its products under the Canadian Tire, Canadian Tire Gas, Pro Hockey Life, Mark's, PartSource, Helly Hansen, Party City, 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 properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, industrial properties, mixed-use commercial property, and development properties. The Financial Services segment provides 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.