Dollar General Corporation (DG)vsThe Home Depot Inc (HD)
DG
Dollar General Corporation
$119.55
+1.42%
CONSUMER DEFENSIVE · Cap: $25.96B
HD
The Home Depot Inc
$332.51
+0.48%
CONSUMER CYCLICAL · Cap: $319.31B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 285% more annual revenue ($164.68B vs $42.72B). HD leads profitability with a 8.6% profit margin vs 3.5%. DG appears more attractively valued with a PEG of 1.44. DG earns a higher WallStSmart Score of 65/100 (C+).
DG
Buy65
out of 100
Grade: C+
HD
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.1%
Fair Value
$320.58
Current Price
$119.55
$201.03 discount
Margin of Safety
-241.7%
Fair Value
$96.83
Current Price
$332.51
$235.68 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 121.9% YoY
Attractively priced relative to earnings
Generating 1.3B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 146 in profit
Safe zone — low bankruptcy risk
Generating 2.3B in free cash flow
Areas to Watch
3.5% margin — thin
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Trading at 25.9x book value
Revenue declined 3.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : DG
The strongest argument for DG centers on EPS Growth, P/E Ratio, Free Cash Flow. PEG of 1.44 suggests the stock is reasonably priced for its growth.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
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 : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.04 — expect wider price swings.
DG is growing revenue faster at 5.9% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DG scores higher overall (65/100 vs 50/100). 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 →The Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
Compare with Other DISCOUNT STORES Stocks
Want to dig deeper into these stocks?