WallStSmart

Dollar General Corporation (DG)vsEuropean Wax Center Inc (EWCZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 20577% more annual revenue ($42.72B vs $206.63M). EWCZ leads profitability with a 4.2% profit margin vs 3.5%. DG trades at a lower P/E of 16.9x. DG earns a higher WallStSmart Score of 65/100 (C+).

DG

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 8.0Quality: 5.0
Piotroski: 5/9Altman Z: 2.00

EWCZ

Hold

48

out of 100

Grade: D+

Growth: 4.7Profit: 6.0Value: 7.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+31.8%)

Margin of Safety

+31.8%

Fair Value

$215.69

Current Price

$115.88

$99.81 discount

UndervaluedFair: $215.69Overvalued
EWCZUndervalued (+53.5%)

Margin of Safety

+53.5%

Fair Value

$12.31

Current Price

$5.80

$6.51 discount

UndervaluedFair: $12.31Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG4 strengths · Avg: 8.5/10
EPS GrowthGrowth
121.9%10/10

Earnings expanding 121.9% YoY

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

EWCZ1 strengths · Avg: 10.0/10
EPS GrowthGrowth
195.6%10/10

Earnings expanding 195.6% YoY

Areas to Watch

DG2 concerns · Avg: 2.0/10
Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Debt/EquityHealth
2.021/10

Elevated debt levels

EWCZ4 concerns · Avg: 3.0/10
P/E RatioValuation
29.1x4/10

Moderate valuation

Market CapQuality
$257.70M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.2%3/10

4.2% margin — thin

Revenue GrowthGrowth
-9.3%2/10

Revenue declined 9.3%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : EWCZ

The strongest argument for EWCZ centers on EPS Growth.

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.

Bear Case : EWCZ

The primary concerns for EWCZ are P/E Ratio, Market Cap, Profit Margin. Thin 4.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

EWCZ carries more volatility with a beta of 1.42 — expect wider price swings.

DG is growing revenue faster at 5.9% — sustainability is the question.

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

Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DG scores higher overall (65/100 vs 48/100). EWCZ offers better value entry with a 53.5% margin of safety. Both earn "Buy" and "Hold" 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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European Wax Center Inc

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

European Wax Center, Inc. is a franchised holding company of EWC Ventures, LLC that operates out-of-home waxing services in the United States. The company is headquartered in Plano, Texas.

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