Dollar General Corporation (DG) vs Dollar Tree, Inc. (DLTR)

Dollar General Corporation and Dollar Tree, Inc. are both Discount Stores companies. Dollar General Corporation is the larger, with a market value of $27.2B against $21.3B — 1.3× the size. Dollar Tree, Inc. trades at the lower P/E: 13.9× against 16.2×. Dollar Tree, Inc. grew revenue faster over the last twelve months: 8.18% against 4.77%. Dollar Tree, Inc. has the higher net margin (8.03% vs 3.90%) and the higher return on invested capital (26.0% vs 12.4%). Across the 22 metrics below, Dollar Tree, Inc. leads on 16 and Dollar General Corporation on 6.

Valuation

Metric DG DLTR Discount Stores median
P/E 16.15 13.91 19.55
P/S 0.63 1.08 1.08
P/B 2.97 6.35 5.43
Price to free cash flow 13.66 10.99 33.31
EV/EBITDA 8.66 8.38 12.17
EV/Sales 0.70 1.21 1.06
Earnings yield 6.19% 7.19% 3.95%
Free cash flow yield 7.32% 9.10% 2.93%

Profitability

Metric DG DLTR Discount Stores median
Gross margin 31.16% 38.74% 27.27%
Operating margin 5.59% 10.97% 4.45%
Net margin 3.90% 8.03% 3.01%
Free cash flow margin 4.62% 9.85% 3.30%
Return on equity 19.69% 45.87% 20.83%
Return on assets 5.34% 11.76% 7.60%
Return on invested capital 12.43% 25.96% 13.21%

Growth

Metric DG DLTR Discount Stores median
Revenue growth (TTM) 4.77% 8.18% 8.64%
EPS growth (last fiscal year) 34.05% 144.33% —
Revenue growth, 5-year CAGR 4.83% (5.32%) 4.99%
Net income growth, 5-year CAGR (10.65%) (0.90%) 0.00%

Health

Metric DG DLTR Discount Stores median
Debt to equity 0.49 0.86 0.39
Current ratio 1.21 1.13 1.03
Net debt to EBITDA 1.06 0.74 0.59

Dividend

Metric DG DLTR Discount Stores median
Dividend yield 1.65% — 2.12%
Payout ratio 0.23 0.00 0.24

Size

Metric DG DLTR Discount Stores median
Market cap 27.22b 21.27b 16.44b

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