WallStSmart

Dollar General Corporation (DG)vsGaotu Techedu Inc DRC (GOTU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 579% more annual revenue ($43.08B vs $6.34B). DG leads profitability with a 3.6% profit margin vs -6.5%. DG earns a higher WallStSmart Score of 57/100 (C).

DG

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 6.0Quality: 5.5
Piotroski: 5/9Altman Z: 2.08

GOTU

Avoid

32

out of 100

Grade: F

Growth: 6.0Profit: 2.5Value: 5.0Quality: 4.0
Piotroski: 4/9Altman Z: -0.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+12.8%)

Margin of Safety

+12.8%

Fair Value

$168.83

Current Price

$128.68

$40.15 discount

UndervaluedFair: $168.83Overvalued

Intrinsic value data unavailable for GOTU.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG1 strengths · Avg: 8.0/10
P/E RatioValuation
17.8x8/10

Attractively priced relative to earnings

GOTU1 strengths · Avg: 8.0/10
Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

DG4 concerns · Avg: 3.5/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.4%4/10

3.4% revenue growth

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Debt/EquityHealth
1.793/10

Elevated debt levels

GOTU4 concerns · Avg: 2.5/10
Market CapQuality
$371.99M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.4%3/10

Operating margin of 0.4%

Return on EquityProfitability
-33.6%2/10

ROE of -33.6% — below average capital efficiency

EPS GrowthGrowth
-71.2%2/10

Earnings declined 71.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

The strongest argument for DG centers on P/E Ratio.

Bull Case : GOTU

The strongest argument for GOTU centers on Price/Book. Revenue growth of 13.2% demonstrates continued momentum.

Bear Case : DG

The primary concerns for DG are PEG Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 1.79 is elevated, increasing financial risk. Thin 3.6% margins leave little buffer for downturns.

Bear Case : GOTU

The primary concerns for GOTU are Market Cap, Operating Margin, Return on Equity.

Key Dynamics to Monitor

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

GOTU carries more volatility with a beta of 0.62 — expect wider price swings.

GOTU is growing revenue faster at 13.2% — sustainability is the question.

DG generates stronger free cash flow (365M), providing more financial flexibility.

Bottom Line

DG scores higher overall (57/100 vs 32/100). Both earn "Buy" and "Avoid" 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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Gaotu Techedu Inc DRC

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China

Gaotu Techedu Inc., a technology-driven education company, offers K-12 online tutoring services after school in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.

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