WallStSmart

Dollar General Corporation (DG)vsGeneral Dynamics Corporation (GD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

General Dynamics Corporation generates 26% more annual revenue ($53.81B vs $42.72B). GD leads profitability with a 8.1% profit margin vs 3.5%. DG appears more attractively valued with a PEG of 1.69. DG earns a higher WallStSmart Score of 63/100 (C+).

DG

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 7.3Quality: 5.0
Piotroski: 5/9Altman Z: 2.00

GD

Buy

60

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 3.3Quality: 7.0
Piotroski: 6/9Altman Z: 2.95
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+31.5%)

Margin of Safety

+31.5%

Fair Value

$214.72

Current Price

$113.29

$101.43 discount

UndervaluedFair: $214.72Overvalued
GDSignificantly Overvalued (-22.2%)

Margin of Safety

-22.2%

Fair Value

$293.63

Current Price

$346.53

$52.90 premium

UndervaluedFair: $293.63Overvalued

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
17.0x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

GD2 strengths · Avg: 8.5/10
Market CapQuality
$93.71B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.95B8/10

Generating 2.0B in free cash flow

Areas to Watch

DG3 concerns · Avg: 2.7/10
PEG RatioValuation
1.694/10

Expensive relative to growth rate

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Debt/EquityHealth
2.021/10

Elevated debt levels

GD1 concerns · Avg: 2.0/10
PEG RatioValuation
2.582/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

The strongest argument for DG centers on EPS Growth, P/E Ratio, Price/Book.

Bull Case : GD

The strongest argument for GD centers on Market Cap, Free Cash Flow. Revenue growth of 10.3% demonstrates continued momentum.

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 : GD

The primary concerns for GD are PEG Ratio.

Key Dynamics to Monitor

GD carries more volatility with a beta of 0.34 — expect wider price swings.

GD is growing revenue faster at 10.3% — sustainability is the question.

GD generates stronger free cash flow (2.0B), providing more financial flexibility.

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

Bottom Line

DG scores higher overall (63/100 vs 60/100). 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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General Dynamics Corporation

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Dynamics Corporation (GD) is an American aerospace and defense corporation. It is headquartered in Reston, Fairfax County, Virginia.

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