Sumary of Better Canadian Stock to Buy: Canadian Tire (TSX:CTC.A) vs. Alimentation Couche-Tard (TSX:ATD.B):
- Two such strong businesses include Alimentation Couche-Tard (TSX:ATD.
- Canadian Tire is a specialty retailer (a consumer cyclical business) that survived lockdowns and came out of a pandemic-stricken year 2020 with its investment-grade credit rating intact.
- Alimentation Couche-Tard is a growing international grocery store operator (a consumer defensive business) that can thrive during recessions.
- If you are wondering which of the two strong businesses to buy right now, here’s a head-to-head comparison of the prospects of Alimentation Couche-Tard stock against Canadian Tire stock during the next year.
- Alimentation Couche-Tard pays a $0.087 quarterly dividend that currently yields a low 0.72% annually.
- Future revenue and earnings-growth outlook to 2022 Analysts expect Alimentation Couche Tard to grow its revenue by 29% for the calendar year 2021 followed by a cooled-off 2.4% top-line growth in 2022. However, normalized earnings per share (EPS) could decline slightly by 2.6% this year before making a 4.9% recovery next year.
- The company’s aggressive share-repurchase programs aid normalized earnings-per-share growth.
- Unlike Alimentation Couche-Tard, Canadian Tire is expected to grow sales by 4.5% in 2021. CTC’s revenue growth could slow down to 0.5% for next year.