Dollar General Corporation (DG)vsHormel Foods Corporation (HRL)
DG
Dollar General Corporation
$132.30
+1.70%
CONSUMER DEFENSIVE · Cap: $27.99B
HRL
Hormel Foods Corporation
$21.28
+1.82%
CONSUMER DEFENSIVE · Cap: $11.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Dollar General Corporation generates 259% more annual revenue ($43.64B vs $12.15B). DG leads profitability with a 3.9% profit margin vs 2.8%. HRL appears more attractively valued with a PEG of 1.44. DG earns a higher WallStSmart Score of 63/100 (C+).
DG
Buy63
out of 100
Grade: C+
HRL
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+13.0%
Fair Value
$169.12
Current Price
$132.30
$36.82 discount
Margin of Safety
+46.1%
Fair Value
$44.44
Current Price
$21.28
$23.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 33.3% YoY
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
3.9% margin — thin
Elevated debt levels
Premium valuation, high expectations priced in
ROE of 4.4% — below average capital efficiency
2.8% margin — thin
Revenue declined 2.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : DG
The strongest argument for DG centers on P/E Ratio, EPS Growth.
Bull Case : HRL
The strongest argument for HRL centers on Price/Book. PEG of 1.44 suggests the stock is reasonably priced for its growth.
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 : HRL
The primary concerns for HRL are P/E Ratio, Return on Equity, Profit Margin. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
HRL carries more volatility with a beta of 0.29 — expect wider price swings.
DG is growing revenue faster at 5.2% — sustainability is the question.
DG generates stronger free cash flow (374M), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DG scores higher overall (63/100 vs 50/100). HRL offers better value entry with a 46.1% 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.
Visit Website →Hormel Foods Corporation
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Hormel Foods Corporation is an American company founded in 1891 in Austin, Minnesota, by George A. Hormel as George A. Hormel & Company. Originally focusing on the packaging and selling of ham, Spam, sausage and other pork, chicken, beef and lamb products to consumers; by the 1980s, Hormel began offering a wider range of packaged and refrigerated foods.
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