WallStSmart

Dollar General Corporation (DG)vsFlowers Foods Inc (FLO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 713% more annual revenue ($42.72B vs $5.26B). DG leads profitability with a 3.5% profit margin vs 1.6%. DG appears more attractively valued with a PEG of 1.65. DG earns a higher WallStSmart Score of 65/100 (B-).

DG

Strong Buy

65

out of 100

Grade: B-

Growth: 6.7Profit: 6.0Value: 7.3Quality: 5.0
Piotroski: 5/9Altman Z: 2.00

FLO

Buy

55

out of 100

Grade: C-

Growth: 6.0Profit: 5.0Value: 6.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+31.6%)

Margin of Safety

+31.6%

Fair Value

$215.04

Current Price

$116.37

$98.67 discount

UndervaluedFair: $215.04Overvalued
FLOUndervalued (+70.8%)

Margin of Safety

+70.8%

Fair Value

$40.02

Current Price

$8.62

$31.40 discount

UndervaluedFair: $40.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG3 strengths · Avg: 8.7/10
EPS GrowthGrowth
121.9%10/10

Earnings expanding 121.9% YoY

P/E RatioValuation
16.7x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

FLO2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
20.0%8/10

Earnings expanding 20.0% YoY

Areas to Watch

DG3 concerns · Avg: 2.7/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Debt/EquityHealth
2.021/10

Elevated debt levels

FLO4 concerns · Avg: 2.8/10
Market CapQuality
$1.85B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

PEG RatioValuation
6.102/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

The strongest argument for DG centers on EPS Growth, P/E Ratio, Free Cash Flow.

Bull Case : FLO

The strongest argument for FLO centers on Price/Book, EPS Growth.

Bear Case : DG

The primary concerns for DG are PEG Ratio, 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 : FLO

The primary concerns for FLO are Market Cap, Return on Equity, Profit Margin. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

FLO carries more volatility with a beta of 0.39 — expect wider price swings.

FLO is growing revenue faster at 6.8% — 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 55/100). FLO offers better value entry with a 70.8% margin of safety. Both earn "Strong 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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Flowers Foods Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Flowers Foods, Inc. produces and markets packaged bakery products in the United States. The company is headquartered in Thomasville, Georgia.

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