WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 117% more annual revenue ($43.64B vs $20.09B). KDP leads profitability with a 7.1% profit margin vs 3.9%. KDP appears more attractively valued with a PEG of 0.98. KDP earns a higher WallStSmart Score of 63/100 (C+).

DG

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 6.0Quality: 5.5
Piotroski: 5/9Altman Z: 2.08

KDP

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 5.0Value: 7.3Quality: 4.0
Piotroski: 5/9Altman Z: 1.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+13.0%)

Margin of Safety

+13.0%

Fair Value

$169.12

Current Price

$126.17

$42.95 discount

UndervaluedFair: $169.12Overvalued
KDPUndervalued (+62.8%)

Margin of Safety

+62.8%

Fair Value

$80.29

Current Price

$34.93

$45.36 discount

UndervaluedFair: $80.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG3 strengths · Avg: 8.0/10
P/E RatioValuation
16.7x8/10

Attractively priced relative to earnings

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
33.3%8/10

Earnings expanding 33.3% YoY

KDP3 strengths · Avg: 8.7/10
Revenue GrowthGrowth
75.6%10/10

Revenue surging 75.6% year-over-year

PEG RatioValuation
0.988/10

Growing faster than its price suggests

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

DG3 concerns · Avg: 3.3/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Debt/EquityHealth
1.683/10

Elevated debt levels

KDP4 concerns · Avg: 3.3/10
P/E RatioValuation
35.0x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
5.7%3/10

ROE of 5.7% — below average capital efficiency

Profit MarginProfitability
7.1%3/10

7.1% margin — thin

Debt/EquityHealth
1.373/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

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

Bull Case : KDP

The strongest argument for KDP centers on Revenue Growth, PEG Ratio, Price/Book. Revenue growth of 75.6% demonstrates continued momentum. PEG of 0.98 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 1.68 is elevated, increasing financial risk. Thin 3.9% margins leave little buffer for downturns.

Bear Case : KDP

The primary concerns for KDP are P/E Ratio, Return on Equity, Profit Margin.

Key Dynamics to Monitor

DG profiles as a value stock while KDP is a hypergrowth play — different risk/reward profiles.

KDP carries more volatility with a beta of 0.41 — expect wider price swings.

KDP is growing revenue faster at 75.6% — sustainability is the question.

KDP generates stronger free cash flow (714M), providing more financial flexibility.

Bottom Line

DG scores higher overall (63/100 vs 63/100). KDP offers better value entry with a 62.8% margin of safety. Both earn "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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