Head to Head Analysis: Dollar Tree (NASDAQ:DLTR) & Maplebear (NASDAQ:CART)

Dollar Tree (NASDAQ:DLTR) and Maplebear (NASDAQ:CART) are both large-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Dollar Tree and Maplebear, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollar Tree	2	13	11	0	2.35
Maplebear	0	6	14	0	2.70

Dollar Tree presently has a consensus target price of $131.83, indicating a potential upside of 8.27%. Maplebear has a consensus target price of $58.24, indicating a potential upside of 17.89%. Given Maplebear’s stronger consensus rating and higher probable upside, analysts plainly believe Maplebear is more favorable than Dollar Tree.

Risk & Volatility

Dollar Tree has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Maplebear has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dollar Tree	8.03%	38.61%	9.94%
Maplebear	11.97%	20.19%	14.13%

Earnings & Valuation

This table compares Dollar Tree and Maplebear”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dollar Tree	$19.41 billion	1.18	$1.28 billion	$8.19	14.87
Maplebear	$3.74 billion	3.06	$447.00 million	$1.83	26.99

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

Insider and Institutional Ownership

97.4% of Dollar Tree shares are owned by institutional investors. Comparatively, 63.1% of Maplebear shares are owned by institutional investors. 7.1% of Dollar Tree shares are owned by company insiders. Comparatively, 24.0% of Maplebear shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Maplebear beats Dollar Tree on 9 of the 14 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 Maplebear

Maplebear Inc., doing business as Instacart, engages in the provision of online grocery shopping services to households in North America. It sells and delivers grocery products, as well as pickup services through a mobile application and website. It also operates virtual convenience stores; and provides software-as-a-service solutions to retailers. The company was incorporated in 2012 and is based in San Francisco, California.