Dollar General vs Dollar Tree

This page provides a comprehensive comparison between Dollar General Corporation and Dollar Tree, Inc. We delve into their respective business models, analyse their financial performance, and examine their market context to offer a clear overview of each company's position. Educational content, not financial advice.

This page provides a comprehensive comparison between Dollar General Corporation and Dollar Tree, Inc. We delve into their respective business models, analyse their financial performance, and examine ...

Comparison Snapshot

Key Financial Metrics

DG

Metric

DLTR

$31.59B

Market Cap

$23.31B

-10.91%

Potential Profit

0.00%

Buy

Analyst Rating

Hold

Why It's Moving

Dollar General ramps up savings blitz and delivery push to lure budget shoppers amid strong Q3 momentum.

Launched '7 Days of Savings' event with limited-time daily deals and free myDG Delivery on one order through February 28, boosting convenience for essential buys.
Q3 net sales hit $10.6B, up 4.6% with same-store sales +2.5% and operating profit jumping 31.5% to $425.9M, signaling resilient demand in discount retail.
Raised FY2025 guidance to 4.7-4.9% sales growth and $6.30-$6.50 EPS, while planning ~450 new U.S. stores in FY2026 to fuel expansion.

Sentiment:

🐃Bullish

Dollar Tree Faces Mixed Signals Amid Institutional Buying and Analyst Optimism.

Truist Securities raised its price target on DLTR while keeping a Buy rating, highlighting reasonable valuation with 9.1% upside and 19.6x forward P/E.
AlphaQuest LLC and Bank of New York Mellon increased holdings by significant margins in recent quarters, reflecting growing investor interest in DLTR's turnaround potential.
Company appointed Daniel Delrosario as Senior VP of Investor Relations and Treasurer, bolstering leadership amid digital strategy execution challenges.

Sentiment:

⚖️Neutral

Dollar General ramps up savings blitz and delivery push to lure budget shoppers amid strong Q3 momentum.

Launched '7 Days of Savings' event with limited-time daily deals and free myDG Delivery on one order through February 28, boosting convenience for essential buys.
Q3 net sales hit $10.6B, up 4.6% with same-store sales +2.5% and operating profit jumping 31.5% to $425.9M, signaling resilient demand in discount retail.
Raised FY2025 guidance to 4.7-4.9% sales growth and $6.30-$6.50 EPS, while planning ~450 new U.S. stores in FY2026 to fuel expansion.

Sentiment:

🐃Bullish

Dollar Tree Faces Mixed Signals Amid Institutional Buying and Analyst Optimism.

Truist Securities raised its price target on DLTR while keeping a Buy rating, highlighting reasonable valuation with 9.1% upside and 19.6x forward P/E.
AlphaQuest LLC and Bank of New York Mellon increased holdings by significant margins in recent quarters, reflecting growing investor interest in DLTR's turnaround potential.
Company appointed Daniel Delrosario as Senior VP of Investor Relations and Treasurer, bolstering leadership amid digital strategy execution challenges.

Sentiment:

⚖️Neutral

Investment Analysis

Dollar General

DG

Pros

Dollar General offers a forward dividend yield of 2.2%, providing income to shareholders.
It trades at a lower 20 times forward earnings compared to peers.
The company plans store remodels, gas station additions, and new openings to drive 1.5-2.5% same-store sales growth in fiscal 2025.

Considerations

Heavy reliance on low-margin consumables exceeds 80% of sales, limiting profitability.
Rural focus heightens competition from Walmart and restricts affluent customer access.
Exposure to SNAP-dependent consumers heightens vulnerability to weak low-income spending.

Dollar Tree

DLTR

Pros

Stronger historical same-store sales growth, including 9% in FY2022 and 5.8% in FY2023.
Tiered pricing strategy targets higher-income urban consumers for sales uplift.
Family Dollar divestiture removes underperforming assets, streamlining operations.

Considerations

Higher stock volatility at 10.35% increases investment risk compared to peers.
No dividend payment deprives shareholders of yield amid similar valuations.
Greater tariff vulnerability due to imported discretionary goods pressures margins.

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