Dollar General Corporation (DG)vsThe Coca-Cola Company (KO)
DG
Dollar General Corporation
$124.58
+1.29%
CONSUMER DEFENSIVE · Cap: $29.39B
KO
The Coca-Cola Company
$88.29
+0.52%
CONSUMER DEFENSIVE · Cap: $379.87B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 15% more annual revenue ($50.13B vs $43.64B). KO leads profitability with a 28.6% profit margin vs 3.9%. DG appears more attractively valued with a PEG of 1.81. KO earns a higher WallStSmart Score of 63/100 (C+).
DG
Buy63
out of 100
Grade: C+
KO
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+13.5%
Fair Value
$170.18
Current Price
$124.58
$45.60 discount
Margin of Safety
-40.1%
Fair Value
$63.02
Current Price
$88.29
$25.27 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 33.3% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 40 in profit
Strong operational efficiency at 34.9%
Keeps 29 of every $100 in revenue as profit
Generating 5.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
3.9% margin — thin
Elevated debt levels
Moderate valuation
Trading at 10.5x book value
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : DG
The strongest argument for DG centers on P/E Ratio, Price/Book, EPS Growth.
Bull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.6% and operating margin at 34.9%.
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 : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Key Dynamics to Monitor
DG profiles as a value stock while KO is a mature play — different risk/reward profiles.
KO carries more volatility with a beta of 0.34 — expect wider price swings.
KO is growing revenue faster at 6.7% — sustainability is the question.
KO generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
DG scores higher overall (63/100 vs 63/100). 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.
Visit Website →The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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