Dollar General Corporation (DG) vs Target Corporation (TGT)

Dollar General Corporation and Target Corporation are both Discount Stores companies. Target Corporation is the larger, with a market value of $72.5B against $27.2B — 2.7× the size. Dollar General Corporation trades at the lower P/E: 16.2× against 16.3×. Dollar General Corporation grew revenue faster over the last twelve months: 4.77% against 1.95%. Target Corporation has the higher net margin (4.08% vs 3.90%) and the higher return on invested capital (13.6% vs 12.4%). Both pay a dividend; Target Corporation yields more (2.91% vs 1.65%). Across the 22 metrics below, Dollar General Corporation leads on 16 and Target Corporation on 6.

Valuation

Metric DG TGT Discount Stores median
P/E 16.15 16.27 19.55
P/S 0.63 0.66 1.08
P/B 2.97 4.01 5.43
Price to free cash flow 13.66 16.06 33.31
EV/EBITDA 8.66 8.86 12.17
EV/Sales 0.70 0.76 1.06
Earnings yield 6.19% 6.15% 3.95%
Free cash flow yield 7.32% 6.23% 2.93%

Profitability

Metric DG TGT Discount Stores median
Gross margin 31.16% 29.30% 27.27%
Operating margin 5.59% 5.59% 4.45%
Net margin 3.90% 4.08% 3.01%
Free cash flow margin 4.62% 4.14% 3.30%
Return on equity 19.69% 26.41% 20.83%
Return on assets 5.34% 7.38% 7.60%
Return on invested capital 12.43% 13.55% 13.21%

Growth

Metric DG TGT Discount Stores median
Revenue growth (TTM) 4.77% 1.95% 8.64%
EPS growth (last fiscal year) 34.05% (8.24%) —
Revenue growth, 5-year CAGR 4.83% 2.29% 4.99%
Net income growth, 5-year CAGR (10.65%) (3.24%) 0.00%

Health

Metric DG TGT Discount Stores median
Debt to equity 0.49 0.86 0.39
Current ratio 1.21 0.99 1.03
Net debt to EBITDA 1.06 1.33 0.59

Dividend

Metric DG TGT Discount Stores median
Dividend yield 1.65% 2.91% 2.12%
Payout ratio 0.23 0.59 0.24

Size

Metric DG TGT Discount Stores median
Market cap 27.22b 72.51b 16.44b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack