WallStSmart

Dollar General Corporation (DG)vsPriceSmart Inc (PSMT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 692% more annual revenue ($42.72B vs $5.39B). DG leads profitability with a 3.5% profit margin vs 2.8%. DG appears more attractively valued with a PEG of 1.44. DG earns a higher WallStSmart Score of 65/100 (C+).

DG

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 10.0Quality: 5.0
Piotroski: 5/9Altman Z: 2.00

PSMT

Buy

52

out of 100

Grade: C-

Growth: 6.0Profit: 5.0Value: 7.3Quality: 5.8
Piotroski: 3/9Altman Z: 4.12
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+54.1%)

Margin of Safety

+54.1%

Fair Value

$320.58

Current Price

$119.55

$201.03 discount

UndervaluedFair: $320.58Overvalued
PSMTSignificantly Overvalued (-79.1%)

Margin of Safety

-79.1%

Fair Value

$86.63

Current Price

$147.18

$60.55 premium

UndervaluedFair: $86.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG3 strengths · Avg: 8.7/10
EPS GrowthGrowth
121.9%10/10

Earnings expanding 121.9% YoY

P/E RatioValuation
17.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

PSMT1 strengths · Avg: 10.0/10
Altman Z-ScoreHealth
4.1210/10

Safe zone — low bankruptcy risk

Areas to Watch

DG2 concerns · Avg: 2.0/10
Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Debt/EquityHealth
2.021/10

Elevated debt levels

PSMT4 concerns · Avg: 3.5/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

P/E RatioValuation
29.8x4/10

Moderate valuation

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.6%3/10

Operating margin of 4.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

The strongest argument for DG centers on EPS Growth, P/E Ratio, Free Cash Flow. PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bull Case : PSMT

The strongest argument for PSMT centers on Altman Z-Score.

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 : PSMT

The primary concerns for PSMT are PEG Ratio, P/E Ratio, Profit Margin. Thin 2.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

PSMT carries more volatility with a beta of 0.75 — expect wider price swings.

PSMT is growing revenue faster at 9.9% — 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 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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PriceSmart Inc

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

PriceSmart, Inc. owns and operates American-style membership shopping warehouse clubs in Central America, the Caribbean and Colombia. The company is headquartered in San Diego, California.

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