WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 559% more annual revenue ($43.64B vs $6.62B). DG leads profitability with a 3.9% profit margin vs -5.0%. DG earns a higher WallStSmart Score of 63/100 (C+).

DG

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 6.0Quality: 5.5
Piotroski: 5/9Altman Z: 2.08

GOTU

Avoid

33

out of 100

Grade: F

Growth: 6.7Profit: 2.0Value: 5.0Quality: 4.0
Piotroski: 4/9Altman Z: -0.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+13.5%)

Margin of Safety

+13.5%

Fair Value

$170.18

Current Price

$124.58

$45.60 discount

UndervaluedFair: $170.18Overvalued

Intrinsic value data unavailable for GOTU.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG3 strengths · Avg: 8.0/10
P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
33.3%8/10

Earnings expanding 33.3% YoY

GOTU2 strengths · Avg: 8.0/10
Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
20.2%8/10

Revenue surging 20.2% year-over-year

Areas to Watch

DG3 concerns · Avg: 3.3/10
PEG RatioValuation
1.814/10

Expensive relative to growth rate

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Debt/EquityHealth
1.683/10

Elevated debt levels

GOTU4 concerns · Avg: 2.3/10
Market CapQuality
$448.96M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-27.0%2/10

ROE of -27.0% — below average capital efficiency

EPS GrowthGrowth
-71.2%2/10

Earnings declined 71.2%

Altman Z-ScoreHealth
-0.482/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

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

Bull Case : GOTU

The strongest argument for GOTU centers on Price/Book, Revenue Growth. Revenue growth of 20.2% demonstrates continued momentum.

Bear Case : DG

The primary concerns for DG are PEG Ratio, Profit Margin, Debt/Equity. Debt-to-equity of 1.68 is elevated, increasing financial risk. Thin 3.9% margins leave little buffer for downturns.

Bear Case : GOTU

The primary concerns for GOTU are Market Cap, Return on Equity, EPS Growth.

Key Dynamics to Monitor

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

GOTU carries more volatility with a beta of 0.71 — expect wider price swings.

GOTU is growing revenue faster at 20.2% — sustainability is the question.

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

Bottom Line

DG scores higher overall (63/100 vs 33/100). 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.

Visit Website →

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.

Want to dig deeper into these stocks?