Dollar Tree Inc (DLTR)vsHormel Foods Corporation (HRL)
DLTR
Dollar Tree Inc
$108.80
-0.43%
CONSUMER DEFENSIVE · Cap: $21.91B
HRL
Hormel Foods Corporation
$23.62
+1.42%
CONSUMER DEFENSIVE · Cap: $13.62B
Smart Verdict
WallStSmart Research — data-driven comparison
Dollar Tree Inc generates 62% more annual revenue ($19.75B vs $12.22B). DLTR leads profitability with a 6.5% profit margin vs 3.8%. DLTR appears more attractively valued with a PEG of 1.43. DLTR earns a higher WallStSmart Score of 59/100 (C).
DLTR
Buy59
out of 100
Grade: C
HRL
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+17.4%
Fair Value
$151.34
Current Price
$108.80
$42.54 discount
Margin of Safety
+48.1%
Fair Value
$46.15
Current Price
$23.62
$22.53 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 34 in profit
Reasonable price relative to book value
Areas to Watch
6.5% margin — thin
Elevated debt levels
Expensive relative to growth rate
Moderate valuation
ROE of 5.9% — below average capital efficiency
3.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : DLTR
The strongest argument for DLTR centers on Return on Equity. PEG of 1.43 suggests the stock is reasonably priced for its growth.
Bull Case : HRL
The strongest argument for HRL centers on Price/Book.
Bear Case : DLTR
The primary concerns for DLTR are Profit Margin, Debt/Equity. Debt-to-equity of 2.17 is elevated, increasing financial risk.
Bear Case : HRL
The primary concerns for HRL are PEG Ratio, P/E Ratio, Return on Equity. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
DLTR carries more volatility with a beta of 0.66 — expect wider price swings.
DLTR is growing revenue faster at 7.2% — sustainability is the question.
DLTR generates stronger free cash flow (391M), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DLTR scores higher overall (59/100 vs 49/100). HRL offers better value entry with a 48.1% margin of safety. 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 Tree Inc
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Dollar Tree is an American chain of discount variety stores that sells items for $1 or less, headquartered in Chesapeake, Virginia.
Visit Website →Hormel Foods Corporation
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Hormel Foods Corporation is an American company founded in 1891 in Austin, Minnesota, by George A. Hormel as George A. Hormel & Company. Originally focusing on the packaging and selling of ham, Spam, sausage and other pork, chicken, beef and lamb products to consumers; by the 1980s, Hormel began offering a wider range of packaged and refrigerated foods.
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