Bunzl (OTCMKTS:BZLFF – Get Free Report) and Dollar Tree (NASDAQ:DLTR – Get Free Report) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.
Analyst Ratings
This is a summary of current ratings and price targets for Bunzl and Dollar Tree, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bunzl | 0 | 0 | 0 | 0 | 0.00 |
| Dollar Tree | 3 | 13 | 10 | 0 | 2.27 |
Dollar Tree has a consensus target price of $130.36, suggesting a potential downside of 1.23%. Given Dollar Tree’s stronger consensus rating and higher possible upside, analysts plainly believe Dollar Tree is more favorable than Bunzl.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Bunzl | N/A | N/A | N/A |
| Dollar Tree | 8.03% | 38.61% | 9.94% |
Institutional & Insider Ownership
52.2% of Bunzl shares are held by institutional investors. Comparatively, 97.4% of Dollar Tree shares are held by institutional investors. 7.1% 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 & Valuation
This table compares Bunzl and Dollar Tree”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bunzl | N/A | N/A | N/A | $0.62 | 59.54 |
| Dollar Tree | $20.07 billion | 1.23 | $1.28 billion | $8.19 | 16.12 |
Dollar Tree has higher revenue and earnings than Bunzl. Dollar Tree is trading at a lower price-to-earnings ratio than Bunzl, indicating that it is currently the more affordable of the two stocks.
Summary
Dollar Tree beats Bunzl on 10 of the 11 factors compared between the two stocks.
About Bunzl
Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers food packaging, films, labels, cleaning and hygiene supplies, and personal protection equipment to grocery stores, supermarkets, and convenience stores. It also provides food packaging, disposable tableware, guest amenities, catering equipment, agricultural supplies, cleaning and hygiene products, and safety items to hotels, restaurants, contract caterers, food processors, commercial growers, and the leisure sector; and gloves, boots, hard hats, ear and eye protection, and other workwear, as well as cleaning and hygiene supplies, and asset protection products to industrial and construction, and ecommerce sectors. In addition, the company offers chemicals and hygiene paper to cleaning and facilities management companies, and industrial and public sector customers; gloves, masks, swabs, gowns, bandages, and other healthcare related equipment; and healthcare devices to hospitals, care homes, and other facilities serving the healthcare sector. Further, it provides packaging and other store supplies to retail chains, boutiques, department stores, home improvement chains, office supply companies, and related e-commerce sales channels. Bunzl plc was founded in 1854 and is headquartered in London, the United Kingdom.
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.
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