WallStSmart

Dollar General Corporation (DG)vsKeurig Dr Pepper Inc (KDP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 157% more annual revenue ($42.72B vs $16.60B). KDP leads profitability with a 12.5% profit margin vs 3.5%. KDP appears more attractively valued with a PEG of 0.89. KDP earns a higher WallStSmart Score of 69/100 (B-).

DG

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 8.0Quality: 5.0
Piotroski: 5/9Altman Z: 2.00

KDP

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 6.5Value: 7.3Quality: 4.3
Piotroski: 5/9Altman Z: 1.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+54.1%)

Margin of Safety

+54.1%

Fair Value

$320.58

Current Price

$117.16

$203.42 discount

UndervaluedFair: $320.58Overvalued
KDPUndervalued (+2.7%)

Margin of Safety

+2.7%

Fair Value

$30.72

Current Price

$26.23

$4.49 discount

UndervaluedFair: $30.72Overvalued

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
17.1x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

KDP4 strengths · Avg: 8.5/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

PEG RatioValuation
0.898/10

Growing faster than its price suggests

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
22.6%8/10

Strong operational efficiency at 22.6%

Areas to Watch

DG2 concerns · Avg: 2.0/10
Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Debt/EquityHealth
2.021/10

Elevated debt levels

KDP1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
1.062/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : KDP

The strongest argument for KDP centers on Price/Book, PEG Ratio, P/E Ratio. Revenue growth of 10.5% demonstrates continued momentum. PEG of 0.89 suggests the stock is reasonably priced for its growth.

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 : KDP

The primary concerns for KDP are Altman Z-Score.

Key Dynamics to Monitor

KDP carries more volatility with a beta of 0.30 — expect wider price swings.

KDP is growing revenue faster at 10.5% — 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

KDP scores higher overall (69/100 vs 65/100) and 10.5% revenue growth. DG offers better value entry with a 54.1% 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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Keurig Dr Pepper Inc

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

Keurig Dr Pepper Inc. is a beverage company in the United States and internationally. The company is headquartered in Burlington, Massachusetts.

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