Comprehensive Stock Comparison
Compare Target Corporation (TGT) vs Dollar General Corporation (DG) 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
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.
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.
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 | TGTTarget Corporation | DGDollar General Co… |
|---|---|---|
| RevenueTrailing 12 months | $105.4B | $42.1B |
| EBITDAEarnings before interest/tax | $8.2B | $2.9B |
| Net IncomeAfter-tax profit | $4.0B | $1.3B |
| Free Cash FlowCash after capex | $5.5B | $2.3B |
| Gross MarginGross profit ÷ Revenue | +25.5% | +30.4% |
| Operating MarginEBIT ÷ Revenue | +4.8% | +4.5% |
| Net MarginNet income ÷ Revenue | +3.8% | +3.0% |
| FCF MarginFCF ÷ Revenue | +5.2% | +5.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | -1.1% | +4.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +13.5% | +43.8% |
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 | TGTTarget Corporation | DGDollar General Co… |
|---|---|---|
| Market CapShares × price | $51.8B | $34.4B |
| Enterprise ValueMkt cap + debt − cash | $70.8B | $50.9B |
| Trailing P/EPrice ÷ TTM EPS | 12.84x | 30.58x |
| Forward P/EPrice ÷ next-FY EPS est. | 15.61x | 23.97x |
| PEG RatioP/E ÷ EPS growth rate | 1.87x | — |
| EV / EBITDAEnterprise value multiple | 8.22x | 18.95x |
| Price / SalesMarket cap ÷ Revenue | 0.49x | 0.85x |
| Price / BookPrice ÷ Book value/share | 3.58x | 4.64x |
| Price / FCFMarket cap ÷ FCF | 11.58x | 20.38x |
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 | TGTTarget Corporation | DGDollar General Co… |
|---|---|---|
| ROE (TTM)Return on equity | +26.1% | +15.6% |
| ROA (TTM)Return on assets | +6.7% | +4.0% |
| ROICReturn on invested capital | +13.4% | +5.3% |
| ROCEReturn on capital employed | +15.4% | +7.1% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 5 |
| Debt / EquityFinancial leverage | 1.36x | 2.36x |
| Net DebtTotal debt minus cash | $19.0B | $16.5B |
| Cash & Equiv.Liquid assets | $869M | $933M |
| Total DebtShort + long-term debt | $19.9B | $17.5B |
| Interest CoverageEBIT ÷ Interest expense | 13.06x | 7.75x |
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 | TGTTarget Corporation | DGDollar General Co… |
|---|---|---|
| YTD ReturnYear-to-date | +14.3% | +14.6% |
| 1-Year ReturnPast 12 months | -4.8% | +113.8% |
| 3-Year ReturnCumulative with dividends | -24.5% | -24.5% |
| 5-Year ReturnCumulative with dividends | -27.6% | -13.3% |
| 10-Year ReturnCumulative with dividends | +87.9% | +133.2% |
| CAGR (3Y)Annualised 3-year return | -9.0% | -8.9% |
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 | TGTTarget Corporation | DGDollar General Co… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.98x | -0.06x |
| 52-Week HighHighest price in past year | $127.06 | $158.23 |
| 52-Week LowLowest price in past year | $83.44 | $70.01 |
| % of 52W HighCurrent price vs 52-week peak | +89.6% | +98.8% |
| RSI (14)Momentum oscillator 0–100 | 56.6 | 62.3 |
| Avg Volume (50D)Average daily shares traded | 5.5M | 2.5M |
Analyst Outlook
Wall Street rates TGT as "Hold" and DG as "Buy". 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 | TGTTarget Corporation | DGDollar General Co… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $102.87 | $143.17 |
| # AnalystsCovering analysts | 58 | 50 |
| Dividend YieldAnnual dividend ÷ price | +3.9% | +1.5% |
| Dividend StreakConsecutive years of raises | 21 | 11 |
| Dividend / ShareAnnual DPS | $4.43 | $2.36 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.9% | 0.0% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Target Corporation (TGT) | 100 | 100.43 | +0.4% |
| Dollar General Corp… (DG) | 100 | 89.92 | -10.1% |
Dollar General Corp… (DG) returned -13% over 5 years vs Target Corporation (TGT)'s -28%.
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Target Corporation (TGT) | $73.8B | $106.6B | +44.4% |
| Dollar General Corp… (DG) | $20.4B | $40.6B | +99.4% |
Target Corporation's revenue grew from $73.8B (2015) to $106.6B (2024) — a 4.2% CAGR. Dollar General Corporation's revenue grew from $20.4B (2015) to $40.6B (2024) — a 8.0% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Target Corporation (TGT) | 4.6% | 3.8% | -15.8% |
| Dollar General Corp… (DG) | 5.7% | 2.8% | -51.6% |
Target Corporation's net margin went from 5% (2015) to 4% (2024). Dollar General Corporation's net margin went from 6% (2015) to 3% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Target Corporation (TGT) | 12.3 | 15.3 | +24.4% |
| Dollar General Corp… (DG) | 16.5 | 14.8 | -10.3% |
Target Corporation has traded in a 12x–25x P/E range over 8 years; current trailing P/E is ~13x. Dollar General Corporation has traded in a 15x–24x P/E range over 8 years; current trailing P/E is ~31x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Target Corporation (TGT) | 5.31 | 8.86 | +66.9% |
| Dollar General Corp… (DG) | 3.95 | 5.11 | +29.4% |
Target Corporation's EPS grew from $5.31 (2015) to $8.86 (2024) — a 6% CAGR. Dollar General Corporation's EPS grew from $3.95 (2015) to $5.11 (2024) — a 3% CAGR.
Chart 6Free Cash Flow — 5 Years
Target Corporation generated $4B FCF in 2024 (-12% vs 2021). Dollar General Corporation generated $2B FCF in 2024 (-6% vs 2021).
TGT vs DG: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TGT or DG 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 — TGT or DG?
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 — TGT or DG?
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 — TGT or DG?
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 — TGT or DG?
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 TGT or DG 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 — TGT or DG?
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 TGT or DG 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 TGT and DG?
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: TGT is a mid-cap deep-value stock; DG is a mid-cap quality compounder 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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