WallStSmart

Dollar General Corporation (DG)vsGrocery Outlet Holding Corp (GO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 811% more annual revenue ($42.72B vs $4.69B). DG leads profitability with a 3.5% profit margin vs -4.8%. 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

GO

Hold

43

out of 100

Grade: D

Growth: 4.7Profit: 3.0Value: 5.0Quality: 5.0
Piotroski: 5/9Altman Z: 1.84
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+54.1%)

Margin of Safety

+54.1%

Fair Value

$320.58

Current Price

$117.16

$203.42 discount

UndervaluedFair: $320.58Overvalued

Intrinsic value data unavailable for GO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG3 strengths · Avg: 8.7/10
EPS GrowthGrowth
121.9%10/10

Earnings expanding 121.9% YoY

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

GO1 strengths · Avg: 10.0/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

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

GO4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Market CapQuality
$693.94M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
2.1%3/10

Operating margin of 2.1%

Debt/EquityHealth
1.513/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

The strongest argument for DG centers on EPS Growth, P/E Ratio, Free Cash Flow. PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bull Case : GO

The strongest argument for GO centers on Price/Book. Revenue growth of 10.7% demonstrates continued momentum.

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 : GO

The primary concerns for GO are Altman Z-Score, Market Cap, Operating Margin. Debt-to-equity of 1.51 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

GO carries more volatility with a beta of 0.50 — expect wider price swings.

GO is growing revenue faster at 10.7% — sustainability is the question.

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

Bottom Line

DG scores higher overall (65/100 vs 43/100). 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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Grocery Outlet Holding Corp

CONSUMER DEFENSIVE · GROCERY STORES · USA

Grocery Outlet Holding Corp. The company is headquartered in Emeryville, California.

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