WallStSmart

Diageo PLC ADR (DEO)vsDollar General Corporation (DG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 118% more annual revenue ($43.08B vs $19.80B). DEO leads profitability with a 12.2% profit margin vs 3.6%. DEO appears more attractively valued with a PEG of 0.79. DG earns a higher WallStSmart Score of 59/100 (C).

DEO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 8.0Value: 8.0Quality: 4.0
Piotroski: 3/9Altman Z: 1.40

DG

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 6.0Quality: 5.5
Piotroski: 5/9Altman Z: 2.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DEOUndervalued (+54.3%)

Margin of Safety

+54.3%

Fair Value

$220.42

Current Price

$80.43

$139.99 discount

UndervaluedFair: $220.42Overvalued
DGUndervalued (+13.5%)

Margin of Safety

+13.5%

Fair Value

$170.04

Current Price

$103.70

$66.34 discount

UndervaluedFair: $170.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DEO4 strengths · Avg: 9.0/10
Return on EquityProfitability
51.8%10/10

Every $100 of equity generates 52 in profit

Operating MarginProfitability
31.3%10/10

Strong operational efficiency at 31.3%

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.51B8/10

Generating 1.5B in free cash flow

DG2 strengths · Avg: 8.0/10
P/E RatioValuation
16.2x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

DEO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
2.9%4/10

2.9% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
69.3x2/10

Trading at 69.3x book value

Revenue GrowthGrowth
-4.0%2/10

Revenue declined 4.0%

DG4 concerns · Avg: 3.5/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.4%4/10

3.4% revenue growth

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Debt/EquityHealth
1.793/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : DEO

The strongest argument for DEO centers on Return on Equity, Operating Margin, PEG Ratio. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bull Case : DG

The strongest argument for DG centers on P/E Ratio, Price/Book.

Bear Case : DEO

The primary concerns for DEO are EPS Growth, Piotroski F-Score, Price/Book. Debt-to-equity of 2.09 is elevated, increasing financial risk.

Bear Case : DG

The primary concerns for DG are PEG Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 1.79 is elevated, increasing financial risk. Thin 3.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

DEO profiles as a declining stock while DG is a value play — different risk/reward profiles.

DEO carries more volatility with a beta of 0.30 — expect wider price swings.

DG is growing revenue faster at 3.4% — sustainability is the question.

DEO generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

DG scores higher overall (59/100 vs 56/100). DEO offers better value entry with a 54.3% 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.

Diageo PLC ADR

CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES · USA

Diageo plc produces, markets and sells alcoholic beverages. The company is headquartered in London, the United Kingdom.

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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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