WallStSmart

Dollar General Corporation (DG)vsTreehouse Foods Inc (THS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 1181% more annual revenue ($42.72B vs $3.34B). DG leads profitability with a 3.5% profit margin vs -0.1%. THS appears more attractively valued with a PEG of 0.30. DG earns a higher WallStSmart Score of 65/100 (C+).

DG

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 8.0Quality: 5.0
Piotroski: 5/9Altman Z: 2.00

THS

Buy

60

out of 100

Grade: C+

Growth: 5.3Profit: 3.0Value: 8.3Quality: 4.0
Piotroski: 3/9Altman Z: 1.31
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+31.8%)

Margin of Safety

+31.8%

Fair Value

$215.69

Current Price

$115.88

$99.81 discount

UndervaluedFair: $215.69Overvalued
THSUndervalued (+67.1%)

Margin of Safety

+67.1%

Fair Value

$74.20

Current Price

$24.43

$49.77 discount

UndervaluedFair: $74.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG4 strengths · Avg: 8.5/10
EPS GrowthGrowth
121.9%10/10

Earnings expanding 121.9% YoY

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

THS2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3010/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

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

THS4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Market CapQuality
$1.23B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.1%3/10

Operating margin of 0.1%

Debt/EquityHealth
1.293/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 : THS

The strongest argument for THS centers on PEG Ratio, Price/Book. PEG of 0.30 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 : THS

The primary concerns for THS are Revenue Growth, Market Cap, Operating Margin.

Key Dynamics to Monitor

DG profiles as a value stock while THS is a turnaround play — different risk/reward profiles.

DG carries more volatility with a beta of 0.34 — 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.

Bottom Line

DG scores higher overall (65/100 vs 60/100). THS offers better value entry with a 67.1% 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.

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Treehouse Foods Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

TreeHouse Foods, Inc. manufactures and distributes private label packaged foods and beverages in the United States and internationally. The company is headquartered in Oak Brook, Illinois.

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