WallStSmart

Dollar Tree Inc (DLTR)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar Tree Inc generates 513% more annual revenue ($19.41B vs $3.17B). WAT leads profitability with a 20.3% profit margin vs 6.6%. DLTR appears more attractively valued with a PEG of 1.12. DLTR earns a higher WallStSmart Score of 63/100 (C+).

DLTR

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 6.5Value: 8.7Quality: 6.5
Piotroski: 6/9Altman Z: 1.82

WAT

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 7.3Quality: 6.8
Piotroski: 4/9Altman Z: 4.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLTRUndervalued (+11.4%)

Margin of Safety

+11.4%

Fair Value

$141.13

Current Price

$106.64

$34.49 discount

UndervaluedFair: $141.13Overvalued
WATSignificantly Overvalued (-349.9%)

Margin of Safety

-349.9%

Fair Value

$73.17

Current Price

$302.32

$229.15 premium

UndervaluedFair: $73.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DLTR2 strengths · Avg: 9.0/10
Return on EquityProfitability
31.7%10/10

Every $100 of equity generates 32 in profit

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

WAT4 strengths · Avg: 9.5/10
Operating MarginProfitability
33.8%10/10

Strong operational efficiency at 33.8%

Altman Z-ScoreHealth
4.9210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.3%9/10

Every $100 of equity generates 29 in profit

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

Areas to Watch

DLTR3 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Profit MarginProfitability
6.6%3/10

6.6% margin — thin

Debt/EquityHealth
1.513/10

Elevated debt levels

WAT2 concerns · Avg: 3.0/10
P/E RatioValuation
28.1x4/10

Moderate valuation

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : DLTR

The strongest argument for DLTR centers on Return on Equity, P/E Ratio. PEG of 1.12 suggests the stock is reasonably priced for its growth.

Bull Case : WAT

The strongest argument for WAT centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 20.3% and operating margin at 33.8%. PEG of 1.25 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 : WAT

The primary concerns for WAT are P/E Ratio, EPS Growth.

Key Dynamics to Monitor

DLTR profiles as a value stock while WAT is a mature play — different risk/reward profiles.

WAT carries more volatility with a beta of 1.20 — 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.

Bottom Line

DLTR scores higher overall (63/100 vs 60/100). Both earn "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.

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Waters Corporation

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.

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