Comprehensive Stock Comparison
Compare Dollar General Corporation (DG) vs Walmart Inc. (WMT) vs Costco Wholesale Corporation (COST) 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 | COST | 8.2% revenue growth vs WMT's 4.7% |
| Value | DG | Lower P/E (24.0x vs 43.8x) |
| Quality / Margins | WMT | 3.3% net margin vs COST's 3.0% |
| Stability / Safety | COST | Beta 0.44 vs WMT's 0.53, lower leverage |
| Dividends | DG | 1.5% yield, 11-year raise streak, vs COST's 0.5% |
| Momentum (1Y) | DG | +113.8% vs COST's -3.1% |
| Efficiency (ROA) | COST | 10.0% ROA vs DG's 4.0%, ROIC 34.5% vs 5.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
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.
Walmart is the world's largest retailer operating a vast network of physical stores and e-commerce platforms. It generates revenue primarily through retail sales — with Walmart U.S. contributing about 65% of total revenue, Walmart International around 20%, and Sam's Club membership warehouse clubs roughly 15%. Its key competitive advantage is massive scale and supply chain efficiency, enabling everyday low prices that competitors struggle to match.
Costco operates a global chain of membership warehouse clubs that sell a wide range of merchandise at low prices to members. It generates revenue primarily from membership fees — which account for roughly 70% of operating income — and merchandise sales, with a razor-thin markup on goods. The company's moat lies in its extreme operational efficiency, massive buying power, and fiercely loyal membership base that renews at over 90% rates.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 3 stocks. BestLagging
Financial Scorecard
DG leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). COST leads in 2 (Profitability & Efficiency, Total Returns). 1 tied.
Financial Metrics (TTM)
WMT is the larger business by revenue, generating $703.1B annually — 16.7x DG's $42.1B. Profitability is closely matched — net margins range from 3.3% (WMT) to 3.0% (COST). On growth, COST holds the edge at +8.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DGDollar General Co… | WMTWalmart Inc. | COSTCostco Wholesale … |
|---|---|---|---|
| RevenueTrailing 12 months | $42.1B | $703.1B | $280.4B |
| EBITDAEarnings before interest/tax | $2.9B | $42.8B | $13.4B |
| Net IncomeAfter-tax profit | $1.3B | $22.9B | $8.3B |
| Free Cash FlowCash after capex | $2.3B | $15.3B | $9.0B |
| Gross MarginGross profit ÷ Revenue | +30.4% | +24.9% | +12.9% |
| Operating MarginEBIT ÷ Revenue | +4.5% | +4.1% | +3.8% |
| Net MarginNet income ÷ Revenue | +3.0% | +3.3% | +3.0% |
| FCF MarginFCF ÷ Revenue | +5.6% | +2.2% | +3.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +4.6% | +5.8% | +8.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +43.8% | +35.1% | +11.4% |
Valuation Metrics
At 30.6x trailing earnings, DG trades at a 45% valuation discount to COST's 55.5x P/E. Adjusting for growth (PEG ratio), COST offers better value at 3.68x vs WMT's 4.26x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | DGDollar General Co… | WMTWalmart Inc. | COSTCostco Wholesale … |
|---|---|---|---|
| Market CapShares × price | $34.4B | $1.02T | $448.0B |
| Enterprise ValueMkt cap + debt − cash | $50.9B | $1.08T | $442.0B |
| Trailing P/EPrice ÷ TTM EPS | 30.58x | 46.87x | 55.51x |
| Forward P/EPrice ÷ next-FY EPS est. | 23.97x | 43.76x | 49.80x |
| PEG RatioP/E ÷ EPS growth rate | — | 4.26x | 3.68x |
| EV / EBITDAEnterprise value multiple | 18.95x | 24.44x | 34.51x |
| Price / SalesMarket cap ÷ Revenue | 0.85x | 1.43x | 1.63x |
| Price / BookPrice ÷ Book value/share | 4.64x | 10.27x | 15.42x |
| Price / FCFMarket cap ÷ FCF | 20.38x | 24.53x | 57.17x |
Profitability & Efficiency
COST delivers a 27.4% return on equity — every $100 of shareholder capital generates $27 in annual profit, vs $16 for DG. COST carries lower financial leverage with a 0.28x debt-to-equity ratio, signaling a more conservative balance sheet compared to DG's 2.36x. On the Piotroski fundamental quality scale (0–9), COST scores 7/9 vs DG's 5/9, reflecting strong financial health.
| Metric | DGDollar General Co… | WMTWalmart Inc. | COSTCostco Wholesale … |
|---|---|---|---|
| ROE (TTM)Return on equity | +15.6% | +22.3% | +27.4% |
| ROA (TTM)Return on assets | +4.0% | +7.9% | +10.0% |
| ROICReturn on invested capital | +5.3% | +14.7% | +34.5% |
| ROCEReturn on capital employed | +7.1% | +17.5% | +27.9% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 | 7 |
| Debt / EquityFinancial leverage | 2.36x | 0.67x | 0.28x |
| Net DebtTotal debt minus cash | $16.5B | $56.4B | -$6.0B |
| Cash & Equiv.Liquid assets | $933M | $10.7B | $14.2B |
| Total DebtShort + long-term debt | $17.5B | $67.1B | $8.2B |
| Interest CoverageEBIT ÷ Interest expense | 7.75x | 11.85x | 72.26x |
Total Returns (with DRIP)
A $10,000 investment in COST five years ago would be worth $31,542 today (with dividends reinvested), compared to $8,669 for DG. Over the past 12 months, DG leads with a +113.8% total return vs COST's -3.1%. The 3-year compound annual growth rate (CAGR) favors WMT at 40.2% vs DG's -8.9% — a key indicator of consistent wealth creation.
| Metric | DGDollar General Co… | WMTWalmart Inc. | COSTCostco Wholesale … |
|---|---|---|---|
| YTD ReturnYear-to-date | +14.6% | +13.5% | +18.4% |
| 1-Year ReturnPast 12 months | +113.8% | +30.7% | -3.1% |
| 3-Year ReturnCumulative with dividends | -24.5% | +175.4% | +114.7% |
| 5-Year ReturnCumulative with dividends | -13.3% | +201.3% | +215.4% |
| 10-Year ReturnCumulative with dividends | +133.2% | +512.5% | +616.5% |
| CAGR (3Y)Annualised 3-year return | -8.9% | +40.2% | +29.0% |
Risk & Volatility
DG is the less volatile stock with a -0.06 beta — it tends to amplify market swings less than WMT's 0.53 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 COST's 94.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | DGDollar General Co… | WMTWalmart Inc. | COSTCostco Wholesale … |
|---|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | -0.06x | 0.53x | 0.44x |
| 52-Week HighHighest price in past year | $158.23 | $134.69 | $1067.08 |
| 52-Week LowLowest price in past year | $70.01 | $79.81 | $846.80 |
| % of 52W HighCurrent price vs 52-week peak | +98.8% | +95.0% | +94.7% |
| RSI (14)Momentum oscillator 0–100 | 62.3 | 49.9 | 53.4 |
| Avg Volume (50D)Average daily shares traded | 2.5M | 29.5M | 2.1M |
Analyst Outlook
Analyst consensus: DG as "Buy", WMT as "Buy", COST as "Buy". Consensus price targets imply 6.5% upside for WMT (target: $136) vs -8.4% for DG (target: $143). For income investors, DG offers the higher dividend yield at 1.51% vs COST's 0.49%.
| Metric | DGDollar General Co… | WMTWalmart Inc. | COSTCostco Wholesale … |
|---|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy | Buy |
| Price TargetConsensus 12-month target | $143.17 | $136.31 | $1048.21 |
| # AnalystsCovering analysts | 50 | 64 | 57 |
| Dividend YieldAnnual dividend ÷ price | +1.5% | +0.7% | +0.5% |
| Dividend StreakConsecutive years of raises | 11 | 37 | 0 |
| Dividend / ShareAnnual DPS | $2.36 | $0.94 | $4.91 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.8% | +0.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Dollar General Corp… (DG) | 100 | 89.92 | -10.1% |
| Walmart Inc. (WMT) | 100 | 321.15 | +221.1% |
| Costco Wholesale Co… (COST) | 100 | 313.24 | +213.2% |
Costco Wholesale Co… (COST) returned +215% over 5 years vs Dollar General Corp… (DG)'s -13%. A $10,000 investment in COST 5 years ago would be worth $31,542 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Dollar General Corp… (DG) | $23.5B | $40.6B | +73.0% |
| Walmart Inc. (WMT) | $485.9B | $713.2B | +46.8% |
| Costco Wholesale Co… (COST) | $129.0B | $275.2B | +113.3% |
Walmart Inc.'s revenue grew from $485.9B (2017) to $713.2B (2026) — a 4.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Dollar General Corp… (DG) | 6.6% | 2.8% | -57.7% |
| Walmart Inc. (WMT) | 2.8% | 3.1% | +9.3% |
| Costco Wholesale Co… (COST) | 2.1% | 2.9% | +41.7% |
Walmart Inc.'s net margin went from 3% (2017) to 3% (2026).
Chart 4P/E Ratio History — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Dollar General Corp… (DG) | 16.5 | 14.8 | -10.3% |
| Walmart Inc. (WMT) | 22.5 | 46.9 | +108.4% |
| Costco Wholesale Co… (COST) | 30.6 | 47.4 | +54.9% |
Dollar General Corporation has traded in a 15x–24x P/E range over 8 years; current trailing P/E is ~31x. Walmart Inc. has traded in a 23x–53x P/E range over 10 years; current trailing P/E is ~47x.
Chart 5EPS Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Dollar General Corp… (DG) | 5.63 | 5.11 | -9.2% |
| Walmart Inc. (WMT) | 1.46 | 2.73 | +87.0% |
| Costco Wholesale Co… (COST) | 6.08 | 18.21 | +199.5% |
Walmart Inc.'s EPS grew from $1.46 (2017) to $2.73 (2026) — a 7% CAGR.
Chart 6Free Cash Flow — 5 Years
Dollar General Corporation generated $2B FCF in 2024 (-6% vs 2021). Walmart Inc. generated $42B FCF in 2026 (+61% vs 2021).
DG vs WMT vs COST: Key Questions Answered
9 questions · data-driven answers · updated daily
01Is DG or WMT or COST a better buy right now?
Dollar General Corporation (DG) offers the better valuation at 30.6x trailing P/E (24.0x 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 WMT or COST?
On trailing P/E, Dollar General Corporation (DG) is the cheapest at 30.6x versus Costco Wholesale Corporation at 55.5x. On forward P/E, Dollar General Corporation is actually cheaper at 24.0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Costco Wholesale Corporation wins at 3.30x versus Walmart Inc.'s 3.98x.
03Which is the better long-term investment — DG or WMT or COST?
Over the past 5 years, Costco Wholesale Corporation (COST) delivered a total return of +215.4%, compared to -13.3% for Dollar General Corporation (DG). A $10,000 investment in COST five years ago would be worth approximately $32K today (assuming dividends reinvested). Over 10 years, the gap is even starker: COST returned +616.5% versus DG's +133.2%. 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 WMT or COST?
By beta (market sensitivity over 5 years), Dollar General Corporation (DG) is the lower-risk stock at -0.06β versus Walmart Inc.'s 0.53β — meaning WMT is approximately -1020% more volatile than DG relative to the S&P 500. On balance sheet safety, Costco Wholesale Corporation (COST) carries a lower debt/equity ratio of 28% versus 2% for Dollar General Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — DG or WMT or COST?
Walmart Inc. (WMT) is the more profitable company, earning 3.1% net margin versus 2.8% for Dollar General Corporation — meaning it keeps 3.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DG leads at 4.2% versus 3.8% for COST. 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 WMT or COST more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Costco Wholesale Corporation (COST) is the more undervalued stock at a PEG of 3.30x versus Walmart Inc.'s 3.98x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Dollar General Corporation (DG) trades at 24.0x forward P/E versus 49.8x for Costco Wholesale Corporation — 25.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WMT: 6.5% to $136.31.
07Which pays a better dividend — DG or WMT or COST?
All stocks in this comparison pay dividends. Dollar General Corporation (DG) offers the highest yield at 1.5%, versus 0.5% for Costco Wholesale Corporation (COST).
08Is DG or WMT or COST 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%, COST: +616.5%), 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 WMT and COST?
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. DG, WMT pay a dividend while COST does not, making them suitable for different income and tax situations. 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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- Sector: Consumer Defensive
- Market Cap > $100B
- Revenue Growth > 5%
- Dividend Yield > 0.5%