Dollar General Corporation (DG)vsGaotu Techedu Inc DRC (GOTU)
DG
Dollar General Corporation
$115.88
+1.53%
CONSUMER DEFENSIVE · Cap: $25.51B
GOTU
Gaotu Techedu Inc DRC
$1.87
+0.54%
CONSUMER DEFENSIVE · Cap: $450.68M
Smart Verdict
WallStSmart Research — data-driven comparison
Dollar General Corporation generates 595% more annual revenue ($42.72B vs $6.15B). DG leads profitability with a 3.5% profit margin vs -5.3%. DG earns a higher WallStSmart Score of 65/100 (C+).
DG
Buy65
out of 100
Grade: C+
GOTU
Hold45
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+31.8%
Fair Value
$215.69
Current Price
$115.88
$99.81 discount
Margin of Safety
+53.8%
Fair Value
$74.15
Current Price
$1.87
$72.28 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 121.9% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 1.3B in free cash flow
Earnings expanding 103.2% YoY
Reasonable price relative to book value
Revenue surging 21.4% year-over-year
Areas to Watch
3.5% margin — thin
Elevated debt levels
Smaller company, higher risk/reward
ROE of -20.3% — below average capital efficiency
Currently unprofitable
Operating margin of -7.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : DG
The strongest argument for DG centers on EPS Growth, P/E Ratio, Price/Book. PEG of 1.36 suggests the stock is reasonably priced for its growth.
Bull Case : GOTU
The strongest argument for GOTU centers on EPS Growth, Price/Book, Revenue Growth. Revenue growth of 21.4% demonstrates continued momentum.
Bear Case : DG
The primary concerns for DG are 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 : GOTU
The primary concerns for GOTU are Market Cap, Return on Equity, Profit Margin.
Key Dynamics to Monitor
DG profiles as a value stock while GOTU is a growth play — different risk/reward profiles.
GOTU carries more volatility with a beta of 0.69 — expect wider price swings.
GOTU is growing revenue faster at 21.4% — sustainability is the question.
DG generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
DG scores higher overall (65/100 vs 45/100). GOTU offers better value entry with a 53.8% margin of safety. 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 General Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee.
Visit Website →Gaotu Techedu Inc DRC
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
Gaotu Techedu Inc., a technology-driven education company, offers K-12 online tutoring services after school in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.
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