WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar Tree Inc generates 2% more annual revenue ($20.07B vs $19.64B). DEO leads profitability with a 8.8% profit margin vs 8.0%. DEO appears more attractively valued with a PEG of 0.56. DLTR earns a higher WallStSmart Score of 63/100 (C+).

DEO

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 8.0Quality: 4.5
Piotroski: 3/9Altman Z: 1.52

DLTR

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 7.5Value: 6.7Quality: 5.5
Piotroski: 6/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DEOUndervalued (+52.9%)

Margin of Safety

+52.9%

Fair Value

$213.96

Current Price

$86.63

$127.33 discount

UndervaluedFair: $213.96Overvalued
DLTRUndervalued (+19.9%)

Margin of Safety

+19.9%

Fair Value

$156.08

Current Price

$118.17

$37.91 discount

UndervaluedFair: $156.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DEO4 strengths · Avg: 8.5/10
Return on EquityProfitability
37.6%10/10

Every $100 of equity generates 38 in profit

PEG RatioValuation
0.568/10

Growing faster than its price suggests

Operating MarginProfitability
27.0%8/10

Strong operational efficiency at 27.0%

Free Cash FlowQuality
$1.68B8/10

Generating 1.7B in free cash flow

DLTR3 strengths · Avg: 9.3/10
Return on EquityProfitability
47.1%10/10

Every $100 of equity generates 47 in profit

EPS GrowthGrowth
197.2%10/10

Earnings expanding 197.2% YoY

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

Areas to Watch

DEO4 concerns · Avg: 3.8/10
P/E RatioValuation
29.1x4/10

Moderate valuation

EPS GrowthGrowth
2.9%4/10

2.9% earnings growth

Altman Z-ScoreHealth
1.524/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

DLTR2 concerns · Avg: 2.5/10
PEG RatioValuation
1.644/10

Expensive relative to growth rate

Debt/EquityHealth
2.241/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : DEO

The strongest argument for DEO centers on Return on Equity, PEG Ratio, Operating Margin. PEG of 0.56 suggests the stock is reasonably priced for its growth.

Bull Case : DLTR

The strongest argument for DLTR centers on Return on Equity, EPS Growth, P/E Ratio.

Bear Case : DEO

The primary concerns for DEO are P/E Ratio, EPS Growth, Altman Z-Score. Debt-to-equity of 2.04 is elevated, increasing financial risk.

Bear Case : DLTR

The primary concerns for DLTR are PEG Ratio, Debt/Equity. Debt-to-equity of 2.24 is elevated, increasing financial risk.

Key Dynamics to Monitor

DLTR carries more volatility with a beta of 0.66 — expect wider price swings.

DLTR is growing revenue faster at 7.0% — sustainability is the question.

DEO generates stronger free cash flow (1.7B), providing more financial flexibility.

Monitor BEVERAGES - WINERIES & DISTILLERIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DLTR scores higher overall (63/100 vs 52/100). DEO offers better value entry with a 52.9% 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 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.

Visit Website →

Want to dig deeper into these stocks?