WallStSmart

Dollar Tree Inc (DLTR)vsKroger Company (KR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kroger Company generates 661% more annual revenue ($147.64B vs $19.41B). DLTR leads profitability with a 6.6% profit margin vs 0.7%. DLTR appears more attractively valued with a PEG of 1.12. DLTR earns a higher WallStSmart Score of 63/100 (C+).

DLTR

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 6.5Value: 6.0Quality: 5.0
Piotroski: 6/9Altman Z: 1.82

KR

Buy

55

out of 100

Grade: C

Growth: 5.3Profit: 5.0Value: 4.7Quality: 5.3
Piotroski: 3/9Altman Z: 3.79
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLTRUndervalued (+11.4%)

Margin of Safety

+11.4%

Fair Value

$141.13

Current Price

$107.00

$34.13 discount

UndervaluedFair: $141.13Overvalued
KRUndervalued (+4.7%)

Margin of Safety

+4.7%

Fair Value

$72.07

Current Price

$73.22

$1.15 discount

UndervaluedFair: $72.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DLTR1 strengths · Avg: 10.0/10
Return on EquityProfitability
31.7%10/10

Every $100 of equity generates 32 in profit

KR3 strengths · Avg: 9.3/10
EPS GrowthGrowth
50.1%10/10

Earnings expanding 50.1% YoY

Altman Z-ScoreHealth
3.7910/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$1.80B8/10

Generating 1.8B in free cash flow

Areas to Watch

DLTR3 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Profit MarginProfitability
6.6%3/10

6.6% margin — thin

Debt/EquityHealth
1.513/10

Elevated debt levels

KR4 concerns · Avg: 3.5/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.2%4/10

1.2% revenue growth

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
3.5%3/10

Operating margin of 3.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : DLTR

The strongest argument for DLTR centers on Return on Equity. PEG of 1.12 suggests the stock is reasonably priced for its growth.

Bull Case : KR

The strongest argument for KR centers on EPS Growth, Altman Z-Score, Free Cash Flow.

Bear Case : DLTR

The primary concerns for DLTR are Altman Z-Score, Profit Margin, Debt/Equity. Debt-to-equity of 1.51 is elevated, increasing financial risk.

Bear Case : KR

The primary concerns for KR are PEG Ratio, Revenue Growth, Profit Margin. A P/E of 47.5x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

DLTR carries more volatility with a beta of 0.69 — expect wider price swings.

DLTR is growing revenue faster at 9.0% — sustainability is the question.

KR generates stronger free cash flow (1.8B), providing more financial flexibility.

Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DLTR scores higher overall (63/100 vs 55/100). 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 Tree Inc

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Dollar Tree is an American chain of discount variety stores that sells items for $1 or less, headquartered in Chesapeake, Virginia.

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Kroger Company

CONSUMER DEFENSIVE · GROCERY STORES · USA

The Kroger Company, or simply Kroger, is an American retail company founded by Bernard Kroger in 1883 in Cincinnati, Ohio.

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