WallStSmart

Dollar General Corporation (DG)vsUS Foods Holding Corp (USFD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 8% more annual revenue ($42.72B vs $39.42B). DG leads profitability with a 3.5% profit margin vs 1.7%. USFD appears more attractively valued with a PEG of 0.24. 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

USFD

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 5.5Value: 7.3Quality: 6.0
Piotroski: 4/9Altman Z: 3.60
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
USFDUndervalued (+28.0%)

Margin of Safety

+28.0%

Fair Value

$124.84

Current Price

$93.49

$31.35 discount

UndervaluedFair: $124.84Overvalued

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

USFD3 strengths · Avg: 10.0/10
PEG RatioValuation
0.2410/10

Growing faster than its price suggests

EPS GrowthGrowth
205.9%10/10

Earnings expanding 205.9% YoY

Altman Z-ScoreHealth
3.6010/10

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

USFD4 concerns · Avg: 3.5/10
P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

Profit MarginProfitability
1.7%3/10

1.7% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

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 : USFD

The strongest argument for USFD centers on PEG Ratio, EPS Growth, Altman Z-Score. PEG of 0.24 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 : USFD

The primary concerns for USFD are P/E Ratio, Revenue Growth, Profit Margin. Thin 1.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

USFD carries more volatility with a beta of 0.98 — 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 64/100). USFD offers better value entry with a 28.0% 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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US Foods Holding Corp

CONSUMER DEFENSIVE · FOOD DISTRIBUTION · USA

US Foods Holding Corp. The company is headquartered in Rosemont, Illinois.

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