Dollar General Corporation (DG) vs Walmart Inc. (WMT)

Dollar General Corporation and Walmart Inc. are both Discount Stores companies. Walmart Inc. is the larger, with a market value of $826.5B against $26.4B — 31.3× the size. Dollar General Corporation trades at the lower P/E: 15.5× against 37.5×. Walmart Inc. grew revenue faster over the last twelve months: 6.16% against 4.77%. Dollar General Corporation has the higher net margin (3.90% vs 3.00%) and the lower return on invested capital (12.4% vs 13.5%). Both pay a dividend; Dollar General Corporation yields more (2.47% vs 1.18%). Across the 23 metrics below, Dollar General Corporation leads on 16 and Walmart Inc. on 7.

Valuation

Metric DG WMT Discount Stores median
P/E 15.47 37.52 19.50
P/S 0.60 1.12 1.08
P/B 2.84 7.91 5.33
Price to free cash flow 13.08 60.34 32.67
EV/EBITDA 8.33 18.39 12.36
EV/Sales 0.67 1.18 1.03
Earnings yield 6.46% 2.67% 4.05%
Free cash flow yield 7.64% 1.66% 2.99%

Profitability

Metric DG WMT Discount Stores median
Gross margin 31.16% 25.23% 27.27%
Operating margin 5.59% 4.39% 4.45%
Net margin 3.90% 3.00% 3.02%
Free cash flow margin 4.62% 1.86% 3.35%
Return on equity 19.69% 21.96% 20.83%
Return on assets 5.34% 7.82% 7.60%
Return on invested capital 12.43% 13.51% 13.21%

Growth

Metric DG WMT Discount Stores median
Revenue growth (TTM) 4.77% 6.16% 8.64%
EPS growth (last fiscal year) 34.05% 13.28% 11.39%
Revenue growth, 5-year CAGR 4.83% 4.99% 4.99%
Net income growth, 5-year CAGR (10.65%) 10.14% 0.00%

Health

Metric DG WMT Discount Stores median
Debt to equity 0.49 0.54 0.39
Current ratio 1.21 0.77 1.02
Net debt to EBITDA 1.06 0.91 0.59

Dividend

Metric DG WMT Discount Stores median
Dividend yield 2.47% 1.18% 1.83%
Payout ratio 0.38 0.44 0.27

Size

Metric DG WMT Discount Stores median
Market cap 26.38b 826.54b 16.66b

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