Dollar General Corporation (DG)vsThe Coca-Cola Company (KO)
DG
Dollar General Corporation
$128.68
+2.15%
CONSUMER DEFENSIVE · Cap: $27.74B
KO
The Coca-Cola Company
$88.52
-0.63%
CONSUMER DEFENSIVE · Cap: $353.32B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 14% more annual revenue ($49.28B vs $43.08B). KO leads profitability with a 27.8% profit margin vs 3.6%. DG appears more attractively valued with a PEG of 1.80. KO earns a higher WallStSmart Score of 65/100 (B-).
DG
Buy57
out of 100
Grade: C
KO
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+12.8%
Fair Value
$168.83
Current Price
$128.68
$40.15 discount
Margin of Safety
-42.9%
Fair Value
$61.78
Current Price
$88.52
$26.74 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Mega-cap, among the largest globally
Every $100 of equity generates 41 in profit
Strong operational efficiency at 35.1%
Keeps 28 of every $100 in revenue as profit
Generating 1.8B in free cash flow
Areas to Watch
Expensive relative to growth rate
3.4% revenue growth
3.6% margin — thin
Elevated debt levels
Moderate valuation
Trading at 11.3x book value
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : DG
The strongest argument for DG centers on P/E Ratio.
Bull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.
Bear Case : DG
The primary concerns for DG are PEG Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 1.79 is elevated, increasing financial risk. Thin 3.6% margins leave little buffer for downturns.
Bear Case : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Key Dynamics to Monitor
DG profiles as a value stock while KO is a mature play — different risk/reward profiles.
KO carries more volatility with a beta of 0.35 — expect wider price swings.
KO is growing revenue faster at 12.1% — sustainability is the question.
KO generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
KO scores higher overall (65/100 vs 57/100), backed by strong 27.8% margins and 12.1% revenue growth. 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 →The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
Visit Website →Compare with Other DISCOUNT STORES Stocks
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