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DOL vs MG: which stock is the better value?

By Wealth Awesome -
Stocks & ETFs:DOL.TOMG.TO

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Magna screens cheaper than Dollarama on all three valuation measures in this snapshot. That’s a useful starting point, but it doesn’t tell you which stock is the better investment.

Dollarama Inc. (DOL.TO) and Magna International Inc. (MG.TO) are both listed under Consumer Discretionary and the Consumer Discretionary Distribution & Retail industry group in this snapshot. But their businesses and financial profiles differ, so these multiples are only one part of the comparison. At the latest adjusted close on 2026-10-30, Dollarama was C$207.50, with a C$55.7B market cap. Magna was C$88.91, with a C$23.8B market cap. Magna has the lower P/E, PEG and P/B. That makes it look cheaper on these measures, but lower multiples don’t prove a stock is undervalued, that its business is stronger or that its shares will perform better. See the company details for Dollarama and Magna International alongside the snapshot.

Investor takeaway: Magna’s P/E is 23.6, compared with Dollarama’s 42.0. Its PEG is 0.36 versus 2.83, and its P/B is 1.44 versus 37.80. The gap is especially large on P/B, but these figures don’t explain why the market values the companies differently or establish either stock’s fair value. The snapshot also shows different returns on equity and dividend yields. Those figures add context, but they don’t tell the whole story. Both stocks have a Strong Sell analyst consensus label in our table, with an analyst target of C$0.00 for each. Treat these as snapshot data, not proof that one stock is better value.

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Magna is lower on all three supplied valuation multiples

Magna’s P/E is 23.6, compared with Dollarama’s 42.0. Its PEG is 0.36 versus 2.83, and its P/B is 1.44 versus 37.80. These figures show which stock looks cheaper on the available multiples. They don’t prove Magna is undervalued or will outperform.

Bull case

Magna’s lower P/E, PEG and P/B, along with its 2.18% dividend yield, may interest investors comparing valuation and income. Its 6.5% ROE TTM is another factor to consider, though the snapshot doesn’t explain what’s behind it.

Bear case

A lower multiple doesn’t guarantee a bargain. Magna’s 6.5% ROE TTM and the Strong Sell consensus label in the snapshot are worth noting. The figures provided don’t explain what’s driving its valuation.

The valuation snapshot favours Magna on the multiples shown

Here’s a side-by-side comparison using the supplied snapshot figures. Both adjusted closing prices are dated 2026-10-30.

MeasureDollarama (DOL.TO)Magna International (MG.TO)
Last adjusted closeC$207.50C$88.91
Market capC$55.7BC$23.8B
P/E42.023.6
PEG2.830.36
P/B37.801.44
Dividend yield0.22%2.18%
ROE TTM93.1%6.5%

Magna has the lower P/E, PEG and P/B, so it screens cheaper on all three valuation measures in the snapshot. Its dividend yield is also higher. Dollarama has the higher ROE TTM. These figures show what’s in the snapshot, but they don’t explain the companies’ future growth, risks or market valuations.

Cheaper multiples are a screen, not a verdict

A lower multiple can mean a more attractive price relative to a particular measure. It can also reflect different expectations or business risks. The snapshot doesn’t provide enough information to tell which explanation applies or calculate fair value. ROE also differs sharply between the companies. Consider it alongside the valuation figures, not as a standalone measure of business quality.

Our table lists a Strong Sell analyst consensus label and an analyst target of C$0.00 for both stocks. These are the supplied labels and targets, not a reason to call either company the better value. If you’re comparing Dollarama and Magna International, use the multiples as a starting point, then look at broader information about each business and its risks.

Wealth Awesome
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Published: November 2, 2026
Last Updated: November 2, 2026

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