WallStSmart

Dollar General Corporation (DG)vsGrocery Outlet Holding Corp (GO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 820% more annual revenue ($43.64B vs $4.74B). DG leads profitability with a 3.9% profit margin vs -8.0%. DG earns a higher WallStSmart Score of 65/100 (B-).

DG

Strong Buy

65

out of 100

Grade: B-

Growth: 6.7Profit: 6.0Value: 6.0Quality: 5.5
Piotroski: 5/9Altman Z: 2.08

GO

Hold

43

out of 100

Grade: D

Growth: 5.3Profit: 3.0Value: 6.7Quality: 4.5
Piotroski: 4/9Altman Z: 1.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+13.4%)

Margin of Safety

+13.4%

Fair Value

$169.93

Current Price

$121.91

$48.02 discount

UndervaluedFair: $169.93Overvalued
GOUndervalued (+58.4%)

Margin of Safety

+58.4%

Fair Value

$23.55

Current Price

$11.49

$12.06 discount

UndervaluedFair: $23.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG3 strengths · Avg: 8.0/10
P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

EPS GrowthGrowth
33.3%8/10

Earnings expanding 33.3% YoY

GO1 strengths · Avg: 10.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Areas to Watch

DG3 concerns · Avg: 3.3/10
PEG RatioValuation
1.634/10

Expensive relative to growth rate

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Debt/EquityHealth
1.683/10

Elevated debt levels

GO4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

Market CapQuality
$1.10B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

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

Bull Case : GO

The strongest argument for GO centers on Price/Book.

Bear Case : DG

The primary concerns for DG are PEG Ratio, Profit Margin, Debt/Equity. Debt-to-equity of 1.68 is elevated, increasing financial risk. Thin 3.9% margins leave little buffer for downturns.

Bear Case : GO

The primary concerns for GO are Revenue Growth, Altman Z-Score, Market Cap. Debt-to-equity of 2.27 is elevated, increasing financial risk.

Key Dynamics to Monitor

DG profiles as a value stock while GO is a turnaround play — different risk/reward profiles.

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

DG is growing revenue faster at 5.2% — sustainability is the question.

DG generates stronger free cash flow (374M), providing more financial flexibility.

Bottom Line

DG scores higher overall (65/100 vs 43/100). GO offers better value entry with a 58.4% margin of safety. Both earn "Strong 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 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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Grocery Outlet Holding Corp

CONSUMER DEFENSIVE · GROCERY STORES · USA

Grocery Outlet Holding Corp. The company is headquartered in Emeryville, California.

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