Dollar Tree Inc (DLTR)vsHormel Foods Corporation (HRL)
DLTR
Dollar Tree Inc
$94.67
-2.51%
CONSUMER DEFENSIVE · Cap: $18.68B
HRL
Hormel Foods Corporation
$21.33
-0.65%
CONSUMER DEFENSIVE · Cap: $11.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Dollar Tree Inc generates 60% more annual revenue ($19.41B vs $12.14B). DLTR leads profitability with a 6.6% profit margin vs 4.0%. DLTR appears more attractively valued with a PEG of 0.96. DLTR earns a higher WallStSmart Score of 70/100 (B-).
DLTR
Strong Buy70
out of 100
Grade: B-
HRL
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.2%
Fair Value
$169.48
Current Price
$94.67
$74.81 discount
Margin of Safety
+53.6%
Fair Value
$51.61
Current Price
$21.33
$30.28 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 32 in profit
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Grey zone — moderate risk
6.6% margin — thin
Elevated debt levels
ROE of 6.1% — below average capital efficiency
4.0% margin — thin
Revenue declined 2.9%
Earnings declined 5.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : DLTR
The strongest argument for DLTR centers on Return on Equity, PEG Ratio, P/E Ratio. PEG of 0.96 suggests the stock is reasonably priced for its growth.
Bull Case : HRL
The strongest argument for HRL centers on Price/Book. PEG of 1.44 suggests the stock is reasonably priced for its growth.
Bear Case : DLTR
The primary concerns for DLTR are Altman Z-Score, Profit Margin, Debt/Equity. Debt-to-equity of 1.51 is elevated, increasing financial risk.
Bear Case : HRL
The primary concerns for HRL are Return on Equity, Profit Margin, Revenue Growth. Thin 4.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
DLTR carries more volatility with a beta of 0.74 — expect wider price swings.
DLTR is growing revenue faster at 9.0% — sustainability is the question.
DLTR generates stronger free cash flow (970M), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DLTR scores higher overall (70/100 vs 54/100). HRL offers better value entry with a 53.6% 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 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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