WallStSmart

Dollar General Corporation (DG)vsLifeway Foods Inc (LWAY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 20006% more annual revenue ($42.72B vs $212.50M). LWAY leads profitability with a 6.5% profit margin vs 3.5%. DG appears more attractively valued with a PEG of 1.36. DG earns a higher WallStSmart Score of 65/100 (C+).

DG

Buy

65

out of 100

Grade: C+

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

LWAY

Buy

52

out of 100

Grade: C-

Growth: 8.0Profit: 6.5Value: 4.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+31.8%)

Margin of Safety

+31.8%

Fair Value

$215.69

Current Price

$115.88

$99.81 discount

UndervaluedFair: $215.69Overvalued
LWAYUndervalued (+1.1%)

Margin of Safety

+1.1%

Fair Value

$21.74

Current Price

$26.84

$5.10 discount

UndervaluedFair: $21.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG4 strengths · Avg: 8.5/10
EPS GrowthGrowth
121.9%10/10

Earnings expanding 121.9% YoY

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

LWAY2 strengths · Avg: 8.0/10
Revenue GrowthGrowth
18.0%8/10

18.0% revenue growth

EPS GrowthGrowth
21.1%8/10

Earnings expanding 21.1% YoY

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

LWAY4 concerns · Avg: 3.0/10
P/E RatioValuation
31.2x4/10

Premium valuation, high expectations priced in

Market CapQuality
$422.90M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.5%3/10

6.5% margin — thin

PEG RatioValuation
3.502/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

The strongest argument for DG centers on EPS Growth, P/E Ratio, Price/Book. PEG of 1.36 suggests the stock is reasonably priced for its growth.

Bull Case : LWAY

The strongest argument for LWAY centers on Revenue Growth, EPS Growth. Revenue growth of 18.0% demonstrates continued momentum.

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 : LWAY

The primary concerns for LWAY are P/E Ratio, Market Cap, Profit Margin.

Key Dynamics to Monitor

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

DG carries more volatility with a beta of 0.34 — expect wider price swings.

LWAY is growing revenue faster at 18.0% — 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 52/100). 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 →

Lifeway Foods Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. The company is headquartered in Morton Grove, Illinois.

Want to dig deeper into these stocks?