Reviewing Almacenes Éxito (NYSE:EXTO) and Dollar Tree (NASDAQ:DLTR)

Dollar Tree (NASDAQ:DLTR) and Almacenes Éxito (NYSE:EXTO) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

97.4% of Dollar Tree shares are held by institutional investors. 6.8% of Dollar Tree shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Dollar Tree and Almacenes Éxito’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dollar Tree	$30.60 billion	0.70	-$998.40 million	($4.59)	-21.73
Almacenes Éxito	$4.90 billion	0.15	$25.20 million	N/A	N/A

Almacenes Éxito has lower revenue, but higher earnings than Dollar Tree.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Dollar Tree and Almacenes Éxito, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollar Tree	1	7	12	0	2.55
Almacenes Éxito	0	0	0	0	N/A

Dollar Tree currently has a consensus price target of $141.55, indicating a potential upside of 41.90%. Given Dollar Tree’s higher probable upside, analysts plainly believe Dollar Tree is more favorable than Almacenes Éxito.

Profitability

This table compares Dollar Tree and Almacenes Éxito’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dollar Tree	-3.23%	15.67%	5.59%
Almacenes Éxito	N/A	N/A	N/A

Summary

Dollar Tree beats Almacenes Éxito on 8 of the 10 factors compared between the two stocks.

About Dollar Tree

Dollar Tree, Inc. operates retail discount stores. The company operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, which includes everyday consumables, such as household paper and chemicals, food, candy, health, personal care products, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine's Day merchandise. It operates stores under the Dollar Tree and Dollar Tree Canada brands, as well as distribution centers in the United States and Canada. The Family Dollar segment operates general merchandise retail discount stores that offer consumable merchandise, which comprise food and beverages, tobacco, health and personal care, household chemicals, paper products, hardware and automotive supplies, diapers, batteries, and pet food and supplies; and home products, including housewares, home décor, and giftware, as well as domestics, such as comforters, sheets, and towels. It also provides apparel and accessories merchandise comprising clothing, fashion accessories, and shoes; and seasonal and electronics merchandise that include Christmas, Easter, Halloween, and Valentine's Day merchandise, as well as personal electronics, which comprise pre-paid cellular phones and services, stationery and school supplies, and toys. Dollar Tree, Inc. was founded in 1986 and is based in Chesapeake, Virginia.

About Almacenes Éxito

Almacenes Éxito S.A. operates as a retail commerce company in South America. The company operates a chain of retail stores primarily under the Éxito, Carulla, Surtimax, Super Inter, Surti Mayorista, Libertad, Mini Libertad, Devoto, Disco, and Géant brands. It is also involved in the online commerce activities. In addition, the company engages in the credit facilities, insurance, money transfers and remittances, mobile phone services, trade tourist package trips and tickets, repair and maintain furnishings, paperwork, and energy trade activities; acquisition and building commercial premises for establishing stores, malls, or other locations; investing in property, promoting, and developing various kinds of real estate projects; and leasing of premises. Further, it invests in shares, bonds, trade papers, and other securities; enters into firm factoring agreements; and distributes oil-based liquid fuels through service stations, as well as alcohols, biofuels, and natural gas for vehicles and other fuels used in the automotive, industrial, fluvial, maritime, and air transport sectors. Almacenes Éxito S.A. was founded in 1905 and is headquartered in Envigado, Colombia. As of January 19, 2024, Almacenes Éxito S.A. operates as a subsidiary of Super Selectos El Salvador.