Comprehensive Stock Comparison
Compare Dollar General Corporation (DG) vs Target Corporation (TGT) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | DG | 5.0% revenue growth vs TGT's -0.8% |
| Value | TGT | Lower P/E (15.6x vs 24.0x) |
| Quality / Margins | TGT | 3.8% net margin vs DG's 3.0% |
| Stability / Safety | TGT | Lower D/E ratio (135.5% vs 235.6%) |
| Dividends | TGT | 3.9% yield, 21-year raise streak, vs DG's 1.5% |
| Momentum (1Y) | DG | +113.8% vs TGT's -4.8% |
| Efficiency (ROA) | TGT | 6.7% ROA vs DG's 4.0%, ROIC 13.4% vs 5.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Dollar General is a discount retailer operating thousands of small-format stores primarily in rural and suburban communities across the United States. It generates revenue primarily from consumable goods — including food, household essentials, and health/beauty products — which represent about 80% of sales, with the remainder from seasonal items and home products. The company's competitive advantage lies in its extensive rural footprint — often being the only convenient retailer in underserved communities — and its disciplined low-cost operating model that keeps prices consistently below traditional retailers.
Target is a large-format general merchandise retailer offering a curated assortment of essentials, apparel, home goods, and groceries at value prices. It generates revenue primarily through in-store sales (~95%) and digital channels (~5%), with additional income from credit card partnerships and in-store services like pharmacies and food courts. The company's competitive advantage lies in its "cheap chic" brand positioning—offering stylish private-label goods at affordable prices—and its efficient omnichannel fulfillment network that integrates stores as local distribution hubs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
DG leads in 3 of 6 categories (Financial Metrics, Total Returns). TGT leads in 3 (Valuation Metrics, Profitability & Efficiency).
Financial Metrics (TTM)
TGT is the larger business by revenue, generating $105.4B annually — 2.5x DG's $42.1B. Profitability is closely matched — net margins range from 3.8% (TGT) to 3.0% (DG). On growth, DG holds the edge at +4.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DGDollar General Co… | TGTTarget Corporation |
|---|---|---|
| RevenueTrailing 12 months | $42.1B | $105.4B |
| EBITDAEarnings before interest/tax | $2.9B | $8.2B |
| Net IncomeAfter-tax profit | $1.3B | $4.0B |
| Free Cash FlowCash after capex | $2.3B | $5.5B |
| Gross MarginGross profit ÷ Revenue | +30.4% | +25.5% |
| Operating MarginEBIT ÷ Revenue | +4.5% | +4.8% |
| Net MarginNet income ÷ Revenue | +3.0% | +3.8% |
| FCF MarginFCF ÷ Revenue | +5.6% | +5.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +4.6% | -1.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +43.8% | +13.5% |
Valuation Metrics
At 12.8x trailing earnings, TGT trades at a 58% valuation discount to DG's 30.6x P/E. On an enterprise value basis, TGT's 8.2x EV/EBITDA is more attractive than DG's 19.0x.
| Metric | DGDollar General Co… | TGTTarget Corporation |
|---|---|---|
| Market CapShares × price | $34.4B | $51.8B |
| Enterprise ValueMkt cap + debt − cash | $50.9B | $70.8B |
| Trailing P/EPrice ÷ TTM EPS | 30.58x | 12.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 23.97x | 15.61x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.87x |
| EV / EBITDAEnterprise value multiple | 18.95x | 8.22x |
| Price / SalesMarket cap ÷ Revenue | 0.85x | 0.49x |
| Price / BookPrice ÷ Book value/share | 4.64x | 3.58x |
| Price / FCFMarket cap ÷ FCF | 20.38x | 11.58x |
Profitability & Efficiency
TGT delivers a 26.1% return on equity — every $100 of shareholder capital generates $26 in annual profit, vs $16 for DG. TGT carries lower financial leverage with a 1.36x debt-to-equity ratio, signaling a more conservative balance sheet compared to DG's 2.36x. On the Piotroski fundamental quality scale (0–9), TGT scores 7/9 vs DG's 5/9, reflecting strong financial health.
| Metric | DGDollar General Co… | TGTTarget Corporation |
|---|---|---|
| ROE (TTM)Return on equity | +15.6% | +26.1% |
| ROA (TTM)Return on assets | +4.0% | +6.7% |
| ROICReturn on invested capital | +5.3% | +13.4% |
| ROCEReturn on capital employed | +7.1% | +15.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 2.36x | 1.36x |
| Net DebtTotal debt minus cash | $16.5B | $19.0B |
| Cash & Equiv.Liquid assets | $933M | $869M |
| Total DebtShort + long-term debt | $17.5B | $19.9B |
| Interest CoverageEBIT ÷ Interest expense | 7.75x | 13.06x |
Total Returns (with DRIP)
A $10,000 investment in DG five years ago would be worth $8,669 today (with dividends reinvested), compared to $7,238 for TGT. Over the past 12 months, DG leads with a +113.8% total return vs TGT's -4.8%. The 3-year compound annual growth rate (CAGR) favors DG at -8.9% vs TGT's -9.0% — a key indicator of consistent wealth creation.
| Metric | DGDollar General Co… | TGTTarget Corporation |
|---|---|---|
| YTD ReturnYear-to-date | +14.6% | +14.3% |
| 1-Year ReturnPast 12 months | +113.8% | -4.8% |
| 3-Year ReturnCumulative with dividends | -24.5% | -24.5% |
| 5-Year ReturnCumulative with dividends | -13.3% | -27.6% |
| 10-Year ReturnCumulative with dividends | +133.2% | +87.9% |
| CAGR (3Y)Annualised 3-year return | -8.9% | -9.0% |
Risk & Volatility
DG is the less volatile stock with a -0.06 beta — it tends to amplify market swings less than TGT's 0.98 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. DG currently trades 98.8% from its 52-week high vs TGT's 89.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | DGDollar General Co… | TGTTarget Corporation |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | -0.06x | 0.98x |
| 52-Week HighHighest price in past year | $158.23 | $127.06 |
| 52-Week LowLowest price in past year | $70.01 | $83.44 |
| % of 52W HighCurrent price vs 52-week peak | +98.8% | +89.6% |
| RSI (14)Momentum oscillator 0–100 | 62.3 | 56.6 |
| Avg Volume (50D)Average daily shares traded | 2.5M | 5.5M |
Analyst Outlook
Wall Street rates DG as "Buy" and TGT as "Hold". Consensus price targets imply -8.4% upside for DG (target: $143) vs -9.6% for TGT (target: $103). For income investors, TGT offers the higher dividend yield at 3.89% vs DG's 1.51%.
| Metric | DGDollar General Co… | TGTTarget Corporation |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $143.17 | $102.87 |
| # AnalystsCovering analysts | 50 | 58 |
| Dividend YieldAnnual dividend ÷ price | +1.5% | +3.9% |
| Dividend StreakConsecutive years of raises | 11 | 21 |
| Dividend / ShareAnnual DPS | $2.36 | $4.43 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +1.9% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Dollar General Corp… (DG) | 100 | 89.92 | -10.1% |
| Target Corporation (TGT) | 100 | 100.43 | +0.4% |
Dollar General Corp… (DG) returned -13% over 5 years vs Target Corporation (TGT)'s -28%.
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Dollar General Corp… (DG) | $20.4B | $40.6B | +99.4% |
| Target Corporation (TGT) | $73.8B | $106.6B | +44.4% |
Dollar General Corporation's revenue grew from $20.4B (2015) to $40.6B (2024) — a 8.0% CAGR. Target Corporation's revenue grew from $73.8B (2015) to $106.6B (2024) — a 4.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Dollar General Corp… (DG) | 5.7% | 2.8% | -51.6% |
| Target Corporation (TGT) | 4.6% | 3.8% | -15.8% |
Dollar General Corporation's net margin went from 6% (2015) to 3% (2024). Target Corporation's net margin went from 5% (2015) to 4% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Dollar General Corp… (DG) | 16.5 | 14.8 | -10.3% |
| Target Corporation (TGT) | 12.3 | 15.3 | +24.4% |
Dollar General Corporation has traded in a 15x–24x P/E range over 8 years; current trailing P/E is ~31x. Target Corporation has traded in a 12x–25x P/E range over 8 years; current trailing P/E is ~13x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Dollar General Corp… (DG) | 3.95 | 5.11 | +29.4% |
| Target Corporation (TGT) | 5.31 | 8.86 | +66.9% |
Dollar General Corporation's EPS grew from $3.95 (2015) to $5.11 (2024) — a 3% CAGR. Target Corporation's EPS grew from $5.31 (2015) to $8.86 (2024) — a 6% CAGR.
Chart 6Free Cash Flow — 5 Years
Dollar General Corporation generated $2B FCF in 2024 (-6% vs 2021). Target Corporation generated $4B FCF in 2024 (-12% vs 2021).
DG vs TGT: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is DG or TGT a better buy right now?
Target Corporation (TGT) offers the better valuation at 12.8x trailing P/E (15.6x forward), making it the more compelling value choice. Analysts rate Dollar General Corporation (DG) a "Buy" — based on 50 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — DG or TGT?
On trailing P/E, Target Corporation (TGT) is the cheapest at 12.8x versus Dollar General Corporation at 30.6x. On forward P/E, Target Corporation is actually cheaper at 15.6x.
03Which is the better long-term investment — DG or TGT?
Over the past 5 years, Dollar General Corporation (DG) delivered a total return of -13.3%, compared to -27.6% for Target Corporation (TGT). A $10,000 investment in DG five years ago would be worth approximately $9K today (assuming dividends reinvested). Over 10 years, the gap is even starker: DG returned +133.2% versus TGT's +87.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — DG or TGT?
By beta (market sensitivity over 5 years), Dollar General Corporation (DG) is the lower-risk stock at -0.06β versus Target Corporation's 0.98β — meaning TGT is approximately -1811% more volatile than DG relative to the S&P 500. On balance sheet safety, Target Corporation (TGT) carries a lower debt/equity ratio of 136% versus 2% for Dollar General Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — DG or TGT?
Target Corporation (TGT) is the more profitable company, earning 3.8% net margin versus 2.8% for Dollar General Corporation — meaning it keeps 3.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TGT leads at 5.3% versus 4.2% for DG. At the gross margin level — before operating expenses — DG leads at 29.6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is DG or TGT more undervalued right now?
On forward earnings alone, Target Corporation (TGT) trades at 15.6x forward P/E versus 24.0x for Dollar General Corporation — 8.4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DG: -8.4% to $143.17.
07Which pays a better dividend — DG or TGT?
All stocks in this comparison pay dividends. Target Corporation (TGT) offers the highest yield at 3.9%, versus 1.5% for Dollar General Corporation (DG).
08Is DG or TGT better for a retirement portfolio?
For long-horizon retirement investors, Dollar General Corporation (DG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.06), 1.5% yield, +133.2% 10Y return). Both have compounded well over 10 years (DG: +133.2%, TGT: +87.9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between DG and TGT?
Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: DG is a mid-cap quality compounder stock; TGT is a mid-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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