Dollar General Corporation (DG)vsTAL Education Group (TAL)
DG
Dollar General Corporation
$115.88
+1.53%
CONSUMER DEFENSIVE · Cap: $25.51B
TAL
TAL Education Group
$11.12
+2.49%
CONSUMER DEFENSIVE · Cap: $6.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Dollar General Corporation generates 1320% more annual revenue ($42.72B vs $3.01B). TAL leads profitability with a 17.6% profit margin vs 3.5%. TAL appears more attractively valued with a PEG of 0.43. TAL earns a higher WallStSmart Score of 74/100 (B).
DG
Buy65
out of 100
Grade: C+
TAL
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+31.8%
Fair Value
$215.69
Current Price
$115.88
$99.81 discount
Margin of Safety
+88.3%
Fair Value
$101.86
Current Price
$11.12
$90.74 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 121.9% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 1.3B in free cash flow
Growing faster than its price suggests
Attractively priced relative to earnings
Revenue surging 31.5% year-over-year
Earnings expanding 536.0% YoY
Reasonable price relative to book value
Areas to Watch
3.5% margin — thin
Elevated debt levels
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull 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 : TAL
The strongest argument for TAL centers on PEG Ratio, P/E Ratio, Revenue Growth. Profitability is solid with margins at 17.6% and operating margin at 9.0%. Revenue growth of 31.5% 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 : TAL
No major red flags identified for TAL, but monitor valuation.
Key Dynamics to Monitor
DG profiles as a value stock while TAL is a growth play — different risk/reward profiles.
DG carries more volatility with a beta of 0.34 — expect wider price swings.
TAL is growing revenue faster at 31.5% — sustainability is the question.
DG generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
TAL scores higher overall (74/100 vs 65/100), backed by strong 17.6% margins and 31.5% revenue growth. DG offers better value entry with a 31.8% margin of safety. 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 →TAL Education Group
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
TAL Education Group offers K-12 afterschool tutoring services in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.
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