WallStSmart

Dollar General Corporation (DG)vs2U Inc (TWOU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 4717% more annual revenue ($43.64B vs $905.83M). DG leads profitability with a 3.9% profit margin vs -35.1%. TWOU appears more attractively valued with a PEG of 0.19. 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

TWOU

Hold

44

out of 100

Grade: D

Growth: 4.0Profit: 2.5Value: 6.7Quality: 5.0
Piotroski: 4/9Altman Z: -0.67
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 TWOU.

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

TWOU3 strengths · Avg: 10.0/10
PEG RatioValuation
0.1910/10

Growing faster than its price suggests

Price/BookValuation
0.0x10/10

Reasonable price relative to book value

Debt/EquityHealth
-3.6010/10

Conservative balance sheet, low leverage

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

TWOU4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$4.43M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-101.3%2/10

ROE of -101.3% — below average capital efficiency

Revenue GrowthGrowth
-16.8%2/10

Revenue declined 16.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

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

Bull Case : TWOU

The strongest argument for TWOU centers on PEG Ratio, Price/Book, Debt/Equity. PEG of 0.19 suggests the stock is reasonably priced for its growth.

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 : TWOU

The primary concerns for TWOU are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

DG profiles as a value stock while TWOU is a turnaround play — different risk/reward profiles.

TWOU carries more volatility with a beta of 0.80 — expect wider price swings.

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

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

Bottom Line

DG scores higher overall (63/100 vs 44/100). 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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2U Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

2U, Inc. is an educational technology company in the United States, Hong Kong, South Africa, and the United Kingdom. The company is headquartered in Lanham, Maryland.

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