WallStSmart

Dollar General Corporation (DG)vsHormel Foods Corporation (HRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 252% more annual revenue ($42.72B vs $12.14B). HRL leads profitability with a 4.0% profit margin vs 3.5%. HRL appears more attractively valued with a PEG of 1.44. DG earns a higher WallStSmart Score of 65/100 (B-).

DG

Strong Buy

65

out of 100

Grade: B-

Growth: 6.7Profit: 6.0Value: 7.3Quality: 5.0
Piotroski: 5/9Altman Z: 2.00

HRL

Buy

54

out of 100

Grade: C-

Growth: 2.0Profit: 5.0Value: 7.3Quality: 6.8
Piotroski: 4/9Altman Z: 2.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+31.6%)

Margin of Safety

+31.6%

Fair Value

$215.04

Current Price

$114.43

$100.61 discount

UndervaluedFair: $215.04Overvalued
HRLUndervalued (+53.6%)

Margin of Safety

+53.6%

Fair Value

$51.61

Current Price

$21.33

$30.28 discount

UndervaluedFair: $51.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG4 strengths · Avg: 8.5/10
EPS GrowthGrowth
121.9%10/10

Earnings expanding 121.9% YoY

P/E RatioValuation
16.7x8/10

Attractively priced relative to earnings

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

HRL1 strengths · Avg: 10.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Areas to Watch

DG3 concerns · Avg: 2.7/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Debt/EquityHealth
2.021/10

Elevated debt levels

HRL4 concerns · Avg: 2.5/10
Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Revenue GrowthGrowth
-2.9%2/10

Revenue declined 2.9%

EPS GrowthGrowth
-5.1%2/10

Earnings declined 5.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

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

Bull Case : HRL

The strongest argument for HRL centers on Price/Book. PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bear Case : DG

The primary concerns for DG are PEG Ratio, 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 : HRL

The primary concerns for HRL are Return on Equity, Profit Margin, Revenue Growth. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

HRL carries more volatility with a beta of 0.36 — 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.

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

Bottom Line

DG scores higher overall (65/100 vs 54/100). HRL offers better value entry with a 53.6% margin of safety. Both earn "Strong 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.

Visit Website →

Hormel Foods Corporation

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Hormel Foods Corporation is an American company founded in 1891 in Austin, Minnesota, by George A. Hormel as George A. Hormel & Company. Originally focusing on the packaging and selling of ham, Spam, sausage and other pork, chicken, beef and lamb products to consumers; by the 1980s, Hormel began offering a wider range of packaged and refrigerated foods.

Want to dig deeper into these stocks?