Diageo PLC ADR (DEO)vsDollar General Corporation (DG)
DEO
Diageo PLC ADR
$80.65
+4.20%
CONSUMER DEFENSIVE · Cap: $44.08B
DG
Dollar General Corporation
$115.88
+1.53%
CONSUMER DEFENSIVE · Cap: $25.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Dollar General Corporation generates 116% more annual revenue ($42.72B vs $19.80B). DEO leads profitability with a 12.2% profit margin vs 3.5%. DEO appears more attractively valued with a PEG of 0.73. DG earns a higher WallStSmart Score of 65/100 (C+).
DEO
Buy56
out of 100
Grade: C
DG
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+56.5%
Fair Value
$231.62
Current Price
$80.65
$150.97 discount
Margin of Safety
+31.8%
Fair Value
$215.69
Current Price
$115.88
$99.81 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 31.3%
Growing faster than its price suggests
Generating 1.5B in free cash flow
Earnings expanding 121.9% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 1.3B in free cash flow
Areas to Watch
2.9% earnings growth
Weak financial health signals
Trading at 69.5x book value
Revenue declined 4.0%
3.5% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : DEO
The strongest argument for DEO centers on Operating Margin, PEG Ratio, Free Cash Flow. PEG of 0.73 suggests the stock is reasonably priced for its growth.
Bull Case : DG
The strongest argument for DG centers on EPS Growth, P/E Ratio, Price/Book. PEG of 1.36 suggests the stock is reasonably priced for its growth.
Bear Case : DEO
The primary concerns for DEO are EPS Growth, Piotroski F-Score, Price/Book. Debt-to-equity of 2.20 is elevated, increasing financial risk.
Bear Case : DG
The primary concerns for DG are Profit Margin, Debt/Equity. Debt-to-equity of 2.02 is elevated, increasing financial risk. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
DEO profiles as a declining stock while DG is a value play — different risk/reward profiles.
DG carries more volatility with a beta of 0.34 — expect wider price swings.
DG is growing revenue faster at 5.9% — sustainability is the question.
DEO generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
DG scores higher overall (65/100 vs 56/100). DEO offers better value entry with a 56.5% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Diageo PLC ADR
CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES · USA
Diageo plc produces, markets and sells alcoholic beverages. The company is headquartered in London, the United Kingdom.
Visit Website →Dollar General Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee.
Visit Website →Compare with Other BEVERAGES - WINERIES & DISTILLERIES Stocks
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