WallStSmart

Dollar General Corporation (DG)vsGraham Holdings Co (GHC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 765% more annual revenue ($43.08B vs $4.98B). GHC leads profitability with a 6.0% profit margin vs 3.6%. DG appears more attractively valued with a PEG of 1.65. DG earns a higher WallStSmart Score of 59/100 (C).

DG

Buy

59

out of 100

Grade: C

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

GHC

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 5.0Value: 4.0Quality: 8.0
Piotroski: 4/9Altman Z: 3.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+13.5%)

Margin of Safety

+13.5%

Fair Value

$170.04

Current Price

$103.70

$66.34 discount

UndervaluedFair: $170.04Overvalued
GHCSignificantly Overvalued (-32.0%)

Margin of Safety

-32.0%

Fair Value

$840.48

Current Price

$1132.53

$292.05 premium

UndervaluedFair: $840.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

GHC5 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.0410/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.269/10

Conservative balance sheet, low leverage

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
21.4%8/10

Earnings expanding 21.4% YoY

Areas to Watch

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

GHC3 concerns · Avg: 2.7/10
Return on EquityProfitability
6.3%3/10

ROE of 6.3% — below average capital efficiency

Profit MarginProfitability
6.0%3/10

6.0% margin — thin

PEG RatioValuation
4.042/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

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

Bull Case : GHC

The strongest argument for GHC centers on Price/Book, Altman Z-Score, Debt/Equity.

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.

Bear Case : GHC

The primary concerns for GHC are Return on Equity, Profit Margin, PEG Ratio.

Key Dynamics to Monitor

GHC carries more volatility with a beta of 0.72 — expect wider price swings.

GHC is growing revenue faster at 6.0% — sustainability is the question.

DG generates stronger free cash flow (365M), providing more financial flexibility.

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

Bottom Line

DG scores higher overall (59/100 vs 56/100). 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 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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Graham Holdings Co

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Graham Holdings Company is a diversified global media and education company. The company is headquartered in Arlington, Virginia.

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