WallStSmart

Dollar General Corporation (DG)vsWalmart Inc. Common Stock (WMT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Walmart Inc. Common Stock generates 1569% more annual revenue ($713.16B vs $42.72B). DG leads profitability with a 3.5% profit margin vs 3.1%. 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

WMT

Hold

43

out of 100

Grade: D

Growth: 4.7Profit: 5.5Value: 4.7Quality: 7.0
Piotroski: 4/9Altman Z: 3.62
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
WMTSignificantly Overvalued (-552.4%)

Margin of Safety

-552.4%

Fair Value

$18.56

Current Price

$119.02

$100.46 premium

UndervaluedFair: $18.56Overvalued

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

WMT4 strengths · Avg: 9.3/10
Market CapQuality
$1.00T10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.6210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
21.8%9/10

Every $100 of equity generates 22 in profit

Free Cash FlowQuality
$6.10B8/10

Generating 6.1B 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

WMT4 concerns · Avg: 3.0/10
Price/BookValuation
9.5x4/10

Trading at 9.5x book value

Profit MarginProfitability
3.1%3/10

3.1% margin — thin

Operating MarginProfitability
4.6%3/10

Operating margin of 4.6%

PEG RatioValuation
4.722/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DG

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

Bull Case : WMT

The strongest argument for WMT centers on Market Cap, Altman Z-Score, Return on Equity.

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 : WMT

The primary concerns for WMT are Price/Book, Profit Margin, Operating Margin. A P/E of 46.1x leaves little room for execution misses. Thin 3.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

WMT carries more volatility with a beta of 0.66 — expect wider price swings.

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

WMT generates stronger free cash flow (6.1B), providing more financial flexibility.

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

Bottom Line

DG scores higher overall (63/100 vs 43/100). 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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Walmart Inc. Common Stock

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. It also owns and operates Sam's Club retail warehouses.

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