Dollar Tree Inc (DLTR)vsTarget Corporation (TGT)
DLTR
Dollar Tree Inc
$112.40
-0.35%
CONSUMER DEFENSIVE · Cap: $24.66B
TGT
Target Corporation
$154.68
+0.18%
CONSUMER DEFENSIVE · Cap: $70.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 437% more annual revenue ($107.70B vs $20.07B). DLTR leads profitability with a 8.0% profit margin vs 4.1%. DLTR appears more attractively valued with a PEG of 1.64. TGT earns a higher WallStSmart Score of 66/100 (B-).
DLTR
Buy63
out of 100
Grade: C+
TGT
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+19.8%
Fair Value
$155.85
Current Price
$112.40
$43.45 discount
Margin of Safety
+5.3%
Fair Value
$120.98
Current Price
$154.68
$33.70 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 47 in profit
Earnings expanding 197.2% YoY
Attractively priced relative to earnings
Earnings expanding 100.5% YoY
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Attractively priced relative to earnings
Generating 2.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Expensive relative to growth rate
4.1% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DLTR
The strongest argument for DLTR centers on Return on Equity, EPS Growth, P/E Ratio.
Bull Case : TGT
The strongest argument for TGT centers on EPS Growth, Market Cap, Return on Equity.
Bear Case : DLTR
The primary concerns for DLTR are PEG Ratio, Debt/Equity. Debt-to-equity of 2.24 is elevated, increasing financial risk.
Bear Case : TGT
The primary concerns for TGT are PEG Ratio, Profit Margin, Debt/Equity. Thin 4.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
TGT carries more volatility with a beta of 0.99 — expect wider price swings.
DLTR is growing revenue faster at 7.0% — sustainability is the question.
TGT generates stronger free cash flow (2.4B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TGT scores higher overall (66/100 vs 63/100). DLTR offers better value entry with a 19.8% 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 →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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