Q: Kindly contrast these two for growth, for a 12 month horizon, and on timing/price basis for a Buy.
I appreciate your diligence 5i. Thank you.
I appreciate your diligence 5i. Thank you.
5i Research Answer:
Both operate in the consumer field, but the business models are quite different. DOL runs a dollar store, where they sell goods at a higher margin due to the low cost of inventory. NWC runs a retailer that is kind of similar to WMT and targets rural areas with low populations. DOL has bought back shares aggressively while NWC focused on dividend growth and sustainability. These are not apple-to-apple comparisons, for income and downside protection, we would side with NWC. For capital appreciation potential, we like DOL. Anything can happen in 12 months, but if we HAVE TO pick between one of the two, we may side with NWC at the current price. Suggested prices DOL $120; NWC $37