Dollar Tree Inc (DLTR)vsTarget Corporation (TGT)
DLTR
Dollar Tree Inc
$105.92
+0.34%
CONSUMER DEFENSIVE · Cap: $21.92B
TGT
Target Corporation
$113.26
-1.06%
CONSUMER DEFENSIVE · Cap: $52.88B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 453% more annual revenue ($104.78B vs $18.96B). TGT leads profitability with a 3.5% profit margin vs -15.4%. DLTR appears more attractively valued with a PEG of 1.12. DLTR earns a higher WallStSmart Score of 56/100 (C).
DLTR
Buy56
out of 100
Grade: C
TGT
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+0.4%
Fair Value
$125.45
Current Price
$105.92
$19.53 discount
Margin of Safety
-107.8%
Fair Value
$55.15
Current Price
$113.26
$58.11 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 20 in profit
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
Grey zone — moderate risk
Elevated debt levels
Currently unprofitable
3.5% margin — thin
Operating margin of 4.9%
Expensive relative to growth rate
Revenue declined 150.0%
Comparative Analysis Report
WallStSmart ResearchBull 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 : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.
Bear Case : DLTR
The primary concerns for DLTR are Altman Z-Score, Debt/Equity, Profit Margin. Debt-to-equity of 1.51 is elevated, increasing financial risk.
Bear Case : TGT
The primary concerns for TGT are Profit Margin, Operating Margin, PEG Ratio. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
DLTR profiles as a turnaround stock while TGT is a value play — different risk/reward profiles.
TGT carries more volatility with a beta of 1.10 — expect wider price swings.
DLTR is growing revenue faster at 9.4% — sustainability is the question.
TGT generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
DLTR scores higher overall (56/100 vs 46/100). Both earn "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 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.
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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