WallStSmart

Dollar General Corporation (DG)vsDollar Tree Inc (DLTR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 125% more annual revenue ($42.72B vs $18.96B). DG leads profitability with a 3.5% profit margin vs -15.4%. DLTR appears more attractively valued with a PEG of 1.12. DG earns a higher WallStSmart Score of 63/100 (C+).

DG

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 10.0Quality: 5.0
Piotroski: 5/9Altman Z: 2.00

DLTR

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 5.5Value: 8.7Quality: 6.5
Piotroski: 6/9Altman Z: 1.82
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+46.9%)

Margin of Safety

+46.9%

Fair Value

$277.06

Current Price

$124.52

$152.54 discount

UndervaluedFair: $277.06Overvalued
DLTRUndervalued (+0.4%)

Margin of Safety

+0.4%

Fair Value

$125.45

Current Price

$105.92

$19.53 discount

UndervaluedFair: $125.45Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG2 strengths · Avg: 9.0/10
EPS GrowthGrowth
122.0%10/10

Earnings expanding 122.0% YoY

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

DLTR1 strengths · Avg: 9.0/10
Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Areas to Watch

DG3 concerns · Avg: 2.7/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Debt/EquityHealth
2.021/10

Elevated debt levels

DLTR3 concerns · Avg: 2.7/10
Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Debt/EquityHealth
1.513/10

Elevated debt levels

Profit MarginProfitability
-15.4%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

The strongest argument for DG centers on EPS Growth, Free Cash Flow.

Bull Case : DLTR

The strongest argument for DLTR centers on Return on Equity. PEG of 1.12 suggests the stock is reasonably priced for its growth.

Bear Case : DG

The primary concerns for DG are PEG Ratio, Profit Margin, Debt/Equity. Debt-to-equity of 2.02 is elevated, increasing financial risk. Thin 3.5% margins leave little buffer for downturns.

Bear Case : DLTR

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

Key Dynamics to Monitor

DG profiles as a value stock while DLTR is a turnaround play — different risk/reward profiles.

DLTR carries more volatility with a beta of 0.69 — expect wider price swings.

DLTR is growing revenue faster at 9.4% — sustainability is the question.

DG generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

DG scores higher overall (63/100 vs 56/100). 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.

Dollar General Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee.

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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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