Dollar General Corporation (DG)vsKroger Company (KR)
DG
Dollar General Corporation
$117.16
-1.74%
CONSUMER DEFENSIVE · Cap: $25.80B
KR
Kroger Company
$73.22
+1.99%
CONSUMER DEFENSIVE · Cap: $44.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Kroger Company generates 246% more annual revenue ($147.64B vs $42.72B). DG leads profitability with a 3.5% profit margin vs 0.7%. DG appears more attractively valued with a PEG of 1.44. DG earns a higher WallStSmart Score of 65/100 (C+).
DG
Buy65
out of 100
Grade: C+
KR
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.1%
Fair Value
$320.58
Current Price
$117.16
$203.42 discount
Margin of Safety
+4.7%
Fair Value
$72.07
Current Price
$73.22
$1.15 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 121.9% YoY
Attractively priced relative to earnings
Generating 1.3B in free cash flow
Earnings expanding 50.1% YoY
Safe zone — low bankruptcy risk
Generating 1.8B in free cash flow
Areas to Watch
3.5% margin — thin
Elevated debt levels
Expensive relative to growth rate
1.2% revenue growth
0.7% margin — thin
Operating margin of 3.5%
Comparative Analysis Report
WallStSmart ResearchBull 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 : KR
The strongest argument for KR centers on EPS Growth, Altman Z-Score, Free Cash Flow.
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 : KR
The primary concerns for KR are PEG Ratio, Revenue Growth, Profit Margin. A P/E of 47.5x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
KR carries more volatility with a beta of 0.59 — expect wider price swings.
DG is growing revenue faster at 5.9% — sustainability is the question.
KR generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DG scores higher overall (65/100 vs 55/100). 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.
Visit Website →Kroger Company
CONSUMER DEFENSIVE · GROCERY STORES · USA
The Kroger Company, or simply Kroger, is an American retail company founded by Bernard Kroger in 1883 in Cincinnati, Ohio.
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