WallStSmart

Diageo PLC ADR (DEO)vsDollar Tree Inc (DLTR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diageo PLC ADR generates 2% more annual revenue ($19.80B vs $19.41B). DEO leads profitability with a 12.2% profit margin vs 6.6%. DEO appears more attractively valued with a PEG of 0.73. DLTR earns a higher WallStSmart Score of 65/100 (B-).

DEO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.5Value: 8.0Quality: 4.0
Piotroski: 3/9Altman Z: 1.40

DLTR

Strong Buy

65

out of 100

Grade: B-

Growth: 6.0Profit: 6.5Value: 7.3Quality: 5.0
Piotroski: 6/9Altman Z: 1.82
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DEOUndervalued (+56.5%)

Margin of Safety

+56.5%

Fair Value

$231.62

Current Price

$80.65

$150.97 discount

UndervaluedFair: $231.62Overvalued
DLTRUndervalued (+26.4%)

Margin of Safety

+26.4%

Fair Value

$169.84

Current Price

$97.11

$72.73 discount

UndervaluedFair: $169.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DEO3 strengths · Avg: 8.7/10
Operating MarginProfitability
31.3%10/10

Strong operational efficiency at 31.3%

PEG RatioValuation
0.738/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.51B8/10

Generating 1.5B in free cash flow

DLTR2 strengths · Avg: 9.0/10
Return on EquityProfitability
31.7%10/10

Every $100 of equity generates 32 in profit

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

Areas to Watch

DEO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
2.9%4/10

2.9% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
69.5x2/10

Trading at 69.5x book value

Revenue GrowthGrowth
-4.0%2/10

Revenue declined 4.0%

DLTR3 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Profit MarginProfitability
6.6%3/10

6.6% margin — thin

Debt/EquityHealth
1.513/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 : DLTR

The strongest argument for DLTR centers on Return on Equity, P/E Ratio. PEG of 1.12 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 : DLTR

The primary concerns for DLTR are Altman Z-Score, Profit Margin, Debt/Equity. Debt-to-equity of 1.51 is elevated, increasing financial risk.

Key Dynamics to Monitor

DEO profiles as a declining stock while DLTR is a value play — different risk/reward profiles.

DLTR carries more volatility with a beta of 0.74 — expect wider price swings.

DLTR is growing revenue faster at 9.0% — sustainability is the question.

DEO generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

DLTR scores higher overall (65/100 vs 56/100). DEO offers better value entry with a 56.5% margin of safety. Both earn "Strong 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.

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Dollar Tree Inc

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Dollar Tree is an American chain of discount variety stores that sells items for $1 or less, headquartered in Chesapeake, Virginia.

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