Dollar General Corporation (DG)vsTarget Corporation (TGT)
DG
Dollar General Corporation
$114.48
+0.04%
CONSUMER DEFENSIVE · Cap: $25.20B
TGT
Target Corporation
$128.89
-0.66%
CONSUMER DEFENSIVE · Cap: $58.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 145% more annual revenue ($104.78B vs $42.72B). TGT leads profitability with a 3.5% profit margin vs 3.5%. DG appears more attractively valued with a PEG of 1.65. DG earns a higher WallStSmart Score of 65/100 (B-).
DG
Strong Buy65
out of 100
Grade: B-
TGT
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+31.6%
Fair Value
$215.04
Current Price
$114.48
$100.56 discount
Margin of Safety
+33.2%
Fair Value
$171.55
Current Price
$128.89
$42.66 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
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Generating 2.3B in free cash flow
Areas to Watch
Expensive relative to growth rate
3.5% margin — thin
Elevated debt levels
Expensive relative to growth rate
3.5% margin — thin
Operating margin of 4.9%
Revenue declined 1.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : DG
The strongest argument for DG centers on EPS Growth, P/E Ratio, Price/Book.
Bull Case : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.
Bear Case : DG
The primary concerns for DG are PEG Ratio, 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 : TGT
The primary concerns for TGT are PEG Ratio, Profit Margin, Operating Margin. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
TGT carries more volatility with a beta of 1.03 — expect wider price swings.
DG is growing revenue faster at 5.9% — sustainability is the question.
TGT generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DG scores higher overall (65/100 vs 48/100). TGT offers better value entry with a 33.2% margin of safety. Both earn "Strong 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 →Target Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
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