Dollar General Corporation (DG)vsLamb Weston Holdings Inc (LW)
DG
Dollar General Corporation
$115.88
+1.53%
CONSUMER DEFENSIVE · Cap: $25.51B
LW
Lamb Weston Holdings Inc
$43.03
-0.12%
CONSUMER DEFENSIVE · Cap: $5.94B
Smart Verdict
WallStSmart Research — data-driven comparison
Dollar General Corporation generates 555% more annual revenue ($42.72B vs $6.52B). LW leads profitability with a 4.6% profit margin vs 3.5%. LW appears more attractively valued with a PEG of 0.97. DG earns a higher WallStSmart Score of 65/100 (C+).
DG
Buy65
out of 100
Grade: C+
LW
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+31.8%
Fair Value
$215.69
Current Price
$115.88
$99.81 discount
Margin of Safety
+45.9%
Fair Value
$92.92
Current Price
$43.03
$49.89 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 121.9% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 1.3B in free cash flow
Growing faster than its price suggests
Areas to Watch
3.5% margin — thin
Elevated debt levels
2.9% revenue growth
Grey zone — moderate risk
4.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DG
The strongest argument for DG centers on EPS Growth, P/E Ratio, Price/Book. PEG of 1.36 suggests the stock is reasonably priced for its growth.
Bull Case : LW
The strongest argument for LW centers on PEG Ratio. PEG of 0.97 suggests the stock is reasonably priced for its growth.
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 : LW
The primary concerns for LW are Revenue Growth, Altman Z-Score, Profit Margin. Debt-to-equity of 2.25 is elevated, increasing financial risk. Thin 4.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
LW carries more volatility with a beta of 0.48 — expect wider price swings.
DG is growing revenue faster at 5.9% — sustainability is the question.
DG generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DG scores higher overall (65/100 vs 55/100). LW offers better value entry with a 45.9% margin of safety. 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 →Lamb Weston Holdings Inc
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Lamb Weston Holdings, Inc. is an American food processing company that is one of the world's largest producers and processors of frozen french fries and other frozen potato products. It is headquartered in Eagle, Idaho.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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