WallStSmart

Dollar General Corporation (DG)vsAltria Group (MO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 92% more annual revenue ($43.64B vs $22.75B). MO leads profitability with a 35.7% profit margin vs 3.9%. DG appears more attractively valued with a PEG of 1.61. 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

MO

Buy

55

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 4.0Quality: 6.5
Piotroski: 4/9Altman Z: 2.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+13.0%)

Margin of Safety

+13.0%

Fair Value

$169.12

Current Price

$132.30

$36.82 discount

UndervaluedFair: $169.12Overvalued
MOSignificantly Overvalued (-50.8%)

Margin of Safety

-50.8%

Fair Value

$51.74

Current Price

$78.03

$26.29 premium

UndervaluedFair: $51.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG2 strengths · Avg: 8.0/10
P/E RatioValuation
16.7x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
33.3%8/10

Earnings expanding 33.3% YoY

MO6 strengths · Avg: 9.2/10
Profit MarginProfitability
35.7%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
54.2%10/10

Strong operational efficiency at 54.2%

Debt/EquityHealth
-9.2110/10

Conservative balance sheet, low leverage

Market CapQuality
$129.80B9/10

Large-cap with strong market position

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
16.8%8/10

16.8% revenue growth

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

MO2 concerns · Avg: 2.5/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
2.992/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

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

Bull Case : MO

The strongest argument for MO centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 35.7% and operating margin at 54.2%. Revenue growth of 16.8% demonstrates continued momentum.

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 : MO

The primary concerns for MO are Return on Equity, PEG Ratio.

Key Dynamics to Monitor

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

MO carries more volatility with a beta of 0.46 — expect wider price swings.

MO is growing revenue faster at 16.8% — sustainability is the question.

MO generates stronger free cash flow (662M), providing more financial flexibility.

Bottom Line

DG scores higher overall (63/100 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.

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Altria Group

CONSUMER DEFENSIVE · TOBACCO · USA

Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in unincorporated Henrico County, Virginia, just outside the city of Richmond.

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