WallStSmart

Dollar General Corporation (DG)vsMcGraw Hill, Inc. (MH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 1961% more annual revenue ($43.64B vs $2.12B). MH leads profitability with a 4.4% profit margin vs 3.9%. DG trades at a lower P/E of 17.3x. DG 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

MH

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 5.0Value: 5.3Quality: 3.5
Piotroski: 6/9Altman Z: 0.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+13.5%)

Margin of Safety

+13.5%

Fair Value

$170.18

Current Price

$124.58

$45.60 discount

UndervaluedFair: $170.18Overvalued

Intrinsic value data unavailable for MH.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG3 strengths · Avg: 8.0/10
P/E RatioValuation
17.3x8/10

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

MH3 strengths · Avg: 8.7/10
EPS GrowthGrowth
9860.0%10/10

Earnings expanding 9860.0% YoY

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

Areas to Watch

DG3 concerns · Avg: 3.3/10
PEG RatioValuation
1.814/10

Expensive relative to growth rate

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Debt/EquityHealth
1.683/10

Elevated debt levels

MH4 concerns · Avg: 3.3/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Revenue GrowthGrowth
2.6%4/10

2.6% revenue growth

Profit MarginProfitability
4.4%3/10

4.4% margin — thin

Return on EquityProfitability
-9.2%2/10

ROE of -9.2% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

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

Bull Case : MH

The strongest argument for MH centers on EPS Growth, Price/Book, Operating Margin.

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 : MH

The primary concerns for MH are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 3.37 is elevated, increasing financial risk. Thin 4.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

DG is growing revenue faster at 5.2% — sustainability is the question.

DG generates stronger free cash flow (374M), providing more financial flexibility.

Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DG scores higher overall (63/100 vs 57/100). 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.

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McGraw Hill, Inc.

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

McGraw Hill, Inc., doing business as McGraw Hill, provides information solutions for K-12, higher education, and professional markets in the United States and internationally.

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