WallStSmart

Dollar General Corporation (DG)vsPhilip Morris International Inc (PM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 4% more annual revenue ($43.08B vs $41.49B). PM leads profitability with a 26.7% profit margin vs 3.6%. DG appears more attractively valued with a PEG of 1.80. 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

PM

Buy

52

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 3.3Quality: 6.5
Piotroski: 4/9Altman Z: 2.02
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
PMSignificantly Overvalued (-79.3%)

Margin of Safety

-79.3%

Fair Value

$110.70

Current Price

$198.44

$87.74 premium

UndervaluedFair: $110.70Overvalued

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

PM5 strengths · Avg: 9.4/10
Market CapQuality
$302.83B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
36.0%10/10

Strong operational efficiency at 36.0%

Debt/EquityHealth
-5.7210/10

Conservative balance sheet, low leverage

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

Free Cash FlowQuality
$5.11B8/10

Generating 5.1B in free cash flow

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

PM4 concerns · Avg: 2.8/10
P/E RatioValuation
26.5x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
2.622/10

Expensive relative to growth rate

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

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

Bull Case : PM

The strongest argument for PM centers on Market Cap, Operating Margin, Debt/Equity. Profitability is solid with margins at 26.7% and operating margin at 36.0%.

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 : PM

The primary concerns for PM are P/E Ratio, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

DG profiles as a value stock while PM is a mature play — different risk/reward profiles.

PM carries more volatility with a beta of 0.41 — expect wider price swings.

PM is growing revenue faster at 9.1% — sustainability is the question.

PM generates stronger free cash flow (5.1B), providing more financial flexibility.

Bottom Line

DG scores higher overall (57/100 vs 52/100). 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.

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Philip Morris International Inc

CONSUMER DEFENSIVE · TOBACCO · USA

Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.

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