WallStSmart

Dollar General Corporation (DG)vsTarget Corporation (TGT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Target Corporation generates 145% more annual revenue ($104.78B vs $42.72B). TGT leads profitability with a 3.5% profit margin vs 3.5%. DG appears more attractively valued with a PEG of 1.57. DG earns a higher WallStSmart Score of 63/100 (C+).

DG

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 10.0Quality: 5.0
Piotroski: 5/9Altman Z: 2.00

TGT

Hold

46

out of 100

Grade: D+

Growth: 2.0Profit: 5.5Value: 4.7Quality: 5.3
Piotroski: 4/9Altman Z: 2.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGUndervalued (+46.9%)

Margin of Safety

+46.9%

Fair Value

$277.06

Current Price

$124.52

$152.54 discount

UndervaluedFair: $277.06Overvalued
TGTSignificantly Overvalued (-107.8%)

Margin of Safety

-107.8%

Fair Value

$55.15

Current Price

$113.26

$58.11 premium

UndervaluedFair: $55.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DG2 strengths · Avg: 9.0/10
EPS GrowthGrowth
122.0%10/10

Earnings expanding 122.0% YoY

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

TGT4 strengths · Avg: 8.5/10
Market CapQuality
$52.88B9/10

Large-cap with strong market position

Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

P/E RatioValuation
14.4x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.29B8/10

Generating 2.3B in free cash flow

Areas to Watch

DG3 concerns · Avg: 2.7/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Debt/EquityHealth
2.021/10

Elevated debt levels

TGT4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

PEG RatioValuation
3.332/10

Expensive relative to growth rate

Revenue GrowthGrowth
-150.0%2/10

Revenue declined 150.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

The strongest argument for DG centers on EPS Growth, Free Cash Flow.

Bull Case : TGT

The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.

Bear Case : DG

The primary concerns for DG are PEG Ratio, 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 : TGT

The primary concerns for TGT are Profit Margin, Operating Margin, PEG Ratio. Thin 3.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

TGT carries more volatility with a beta of 1.10 — expect wider price swings.

DG is growing revenue faster at 5.9% — sustainability is the question.

TGT generates stronger free cash flow (2.3B), providing more financial flexibility.

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

Bottom Line

DG scores higher overall (63/100 vs 46/100). Both earn "Buy" and "Hold" 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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Target Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.

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