Dollar General Corporation (DG)vsHonest Company Inc (HNST)
DG
Dollar General Corporation
$115.88
+1.53%
CONSUMER DEFENSIVE · Cap: $25.51B
HNST
Honest Company Inc
$3.50
+5.74%
CONSUMER DEFENSIVE · Cap: $391.41M
Smart Verdict
WallStSmart Research — data-driven comparison
Dollar General Corporation generates 11406% more annual revenue ($42.72B vs $371.32M). DG leads profitability with a 3.5% profit margin vs -4.2%. DG earns a higher WallStSmart Score of 65/100 (C+).
DG
Buy65
out of 100
Grade: C+
HNST
Hold37
out of 100
Grade: F
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
+58.2%
Fair Value
$5.12
Current Price
$3.50
$1.62 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 329.7% YoY
Conservative balance sheet, low leverage
Reasonable price relative to book value
Areas to Watch
3.5% margin — thin
Elevated debt levels
Smaller company, higher risk/reward
Operating margin of 1.3%
Weak financial health signals
ROE of -9.1% — below average capital efficiency
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 : HNST
The strongest argument for HNST centers on EPS Growth, Debt/Equity, Price/Book.
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 : HNST
The primary concerns for HNST are Market Cap, Operating Margin, Piotroski F-Score.
Key Dynamics to Monitor
DG profiles as a value stock while HNST is a turnaround play — different risk/reward profiles.
HNST carries more volatility with a beta of 2.16 — expect wider price swings.
DG is growing revenue faster at 5.9% — 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 37/100). HNST offers better value entry with a 58.2% 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 →Honest Company Inc
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
The Honest Company, Inc. manufactures and sells baby, beauty and personal care products. The company is headquartered in Los Angeles, California.
Visit Website →Compare with Other DISCOUNT STORES Stocks
Want to dig deeper into these stocks?