Dollar Tree, Inc. (DLTR) vs Target Corporation (TGT)

Dollar Tree, Inc. and Target Corporation are both Discount Stores companies. Target Corporation is the larger, with a market value of $72.5B against $21.3B — 3.4× the size. Dollar Tree, Inc. trades at the lower P/E: 13.9× against 16.3×. Dollar Tree, Inc. grew revenue faster over the last twelve months: 8.18% against 1.95%. Dollar Tree, Inc. has the higher net margin (8.03% vs 4.08%) and the higher return on invested capital (26.0% vs 13.6%). Across the 22 metrics below, Dollar Tree, Inc. leads on 18 and Target Corporation on 4.

Valuation

Metric DLTR TGT Discount Stores median
P/E 13.91 16.27 19.55
P/S 1.08 0.66 1.08
P/B 6.35 4.01 5.43
Price to free cash flow 10.99 16.06 33.31
EV/EBITDA 8.38 8.86 12.17
EV/Sales 1.21 0.76 1.06
Earnings yield 7.19% 6.15% 3.95%
Free cash flow yield 9.10% 6.23% 2.93%

Profitability

Metric DLTR TGT Discount Stores median
Gross margin 38.74% 29.30% 27.27%
Operating margin 10.97% 5.59% 4.45%
Net margin 8.03% 4.08% 3.01%
Free cash flow margin 9.85% 4.14% 3.30%
Return on equity 45.87% 26.41% 20.83%
Return on assets 11.76% 7.38% 7.60%
Return on invested capital 25.96% 13.55% 13.21%

Growth

Metric DLTR TGT Discount Stores median
Revenue growth (TTM) 8.18% 1.95% 8.64%
EPS growth (last fiscal year) 144.33% (8.24%) —
Revenue growth, 5-year CAGR (5.32%) 2.29% 4.99%
Net income growth, 5-year CAGR (0.90%) (3.24%) 0.00%

Health

Metric DLTR TGT Discount Stores median
Debt to equity 0.86 0.86 0.39
Current ratio 1.13 0.99 1.03
Net debt to EBITDA 0.74 1.33 0.59

Dividend

Metric DLTR TGT Discount Stores median
Dividend yield — 2.91% 2.12%
Payout ratio 0.00 0.59 0.24

Size

Metric DLTR TGT Discount Stores median
Market cap 21.27b 72.51b 16.44b

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