WallStSmart

Dollar General Corporation (DG)vsHumana Inc (HUM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Humana Inc generates 221% more annual revenue ($137.20B vs $42.72B). DG leads profitability with a 3.5% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 1.33. 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

HUM

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 4.5Value: 7.3Quality: 7.5
Piotroski: 4/9Altman Z: 4.37
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+31.6%)

Margin of Safety

+31.6%

Fair Value

$215.04

Current Price

$116.37

$98.67 discount

UndervaluedFair: $215.04Overvalued
HUMUndervalued (+81.0%)

Margin of Safety

+81.0%

Fair Value

$1141.73

Current Price

$246.33

$895.40 discount

UndervaluedFair: $1141.73Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG3 strengths · Avg: 8.7/10
EPS GrowthGrowth
121.9%10/10

Earnings expanding 121.9% YoY

P/E RatioValuation
16.7x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

HUM4 strengths · Avg: 8.5/10
Altman Z-ScoreHealth
4.3710/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
23.5%8/10

Revenue surging 23.5% year-over-year

Free Cash FlowQuality
$1.13B8/10

Generating 1.1B in free cash flow

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

HUM4 concerns · Avg: 2.8/10
Return on EquityProfitability
6.3%3/10

ROE of 6.3% — below average capital efficiency

Profit MarginProfitability
0.8%3/10

0.8% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

EPS GrowthGrowth
-4.6%2/10

Earnings declined 4.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

The strongest argument for DG centers on EPS Growth, P/E Ratio, Free Cash Flow.

Bull Case : HUM

The strongest argument for HUM centers on Altman Z-Score, Price/Book, Revenue Growth. Revenue growth of 23.5% demonstrates continued momentum. PEG of 1.33 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 : HUM

The primary concerns for HUM are Return on Equity, Profit Margin, Operating Margin. Thin 0.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

DG profiles as a value stock while HUM is a growth play — different risk/reward profiles.

HUM carries more volatility with a beta of 0.45 — expect wider price swings.

HUM is growing revenue faster at 23.5% — 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 59/100). HUM offers better value entry with a 81.0% 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.

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Humana Inc

HEALTHCARE · HEALTHCARE PLANS · USA

Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky.

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