Specialty Retail
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2 / 10Stock Comparison
BBY vs DG
Revenue, margins, valuation, and 5-year total return — side by side.
Discount Stores
BBY vs DG — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Specialty Retail | Discount Stores |
| Market Cap | $12.29B | $25.63B |
| Revenue (TTM) | $41.69B | $42.72B |
| Net Income (TTM) | $1.07B | $1.51B |
| Gross Margin | 22.5% | 30.7% |
| Operating Margin | 3.3% | 5.2% |
| Forward P/E | 9.0x | 16.0x |
| Total Debt | $4.13B | $15.72B |
| Cash & Equiv. | $1.74B | $1.14B |
BBY vs DG — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Best Buy Co., Inc. (BBY) | 100 | 75.0 | -25.0% |
| Dollar General Corp… (DG) | 100 | 60.8 | -39.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: BBY vs DG
Each card shows where this stock fits in a portfolio — not just who wins on paper.
BBY is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 8 yrs, beta 1.08, yield 6.5%
- 161.1% 10Y total return vs DG's 57.2%
- Lower P/E (9.0x vs 16.0x)
DG carries the broadest edge in this set and is the clearest fit for growth exposure and sleep-well-at-night.
- Rev growth 5.2%, EPS growth 34.1%, 3Y rev CAGR 4.1%
- Lower volatility, beta 0.43, current ratio 1.13x
- Beta 0.43, yield 2.0%, current ratio 1.13x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 5.2% revenue growth vs BBY's 0.4% | |
| Value | Lower P/E (9.0x vs 16.0x) | |
| Quality / Margins | 3.5% margin vs BBY's 2.6% | |
| Stability / Safety | Beta 0.43 vs BBY's 1.08 | |
| Dividends | 6.5% yield, 8-year raise streak, vs DG's 2.0% | |
| Momentum (1Y) | +28.0% vs BBY's -8.8% | |
| Efficiency (ROA) | 7.0% ROA vs DG's 4.8%, ROIC 18.7% vs 7.0% |
BBY vs DG — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
BBY vs DG — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
DG leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
DG and BBY operate at a comparable scale, with $42.7B and $41.7B in trailing revenue. Profitability is closely matched — net margins range from 3.5% (DG) to 2.6% (BBY). On growth, DG holds the edge at +5.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $41.7B | $42.7B |
| EBITDAEarnings before interest/tax | $1.9B | $3.2B |
| Net IncomeAfter-tax profit | $1.1B | $1.5B |
| Free Cash FlowCash after capex | $1.3B | $3.1B |
| Gross MarginGross profit ÷ Revenue | +22.5% | +30.7% |
| Operating MarginEBIT ÷ Revenue | +3.3% | +5.2% |
| Net MarginNet income ÷ Revenue | +2.6% | +3.5% |
| FCF MarginFCF ÷ Revenue | +3.0% | +7.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | -1.0% | +5.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.7% | +121.8% |
Valuation Metrics
BBY leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 11.6x trailing earnings, BBY trades at a 32% valuation discount to DG's 17.0x P/E. On an enterprise value basis, BBY's 6.6x EV/EBITDA is more attractive than DG's 12.4x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $12.3B | $25.6B |
| Enterprise ValueMkt cap + debt − cash | $14.7B | $40.2B |
| Trailing P/EPrice ÷ TTM EPS | 11.62x | 17.01x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.03x | 16.03x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 6.62x | 12.37x |
| Price / SalesMarket cap ÷ Revenue | 0.29x | 0.60x |
| Price / BookPrice ÷ Book value/share | 3.56x | 3.02x |
| Price / FCFMarket cap ÷ FCF | 9.77x | 10.71x |
Profitability & Efficiency
BBY leads this category, winning 8 of 8 comparable metrics.
Profitability & Efficiency
BBY delivers a 36.8% return on equity — every $100 of shareholder capital generates $37 in annual profit, vs $19 for DG. BBY carries lower financial leverage with a 1.18x debt-to-equity ratio, signaling a more conservative balance sheet compared to DG's 1.85x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +36.8% | +18.7% |
| ROA (TTM)Return on assets | +7.0% | +4.8% |
| ROICReturn on invested capital | +18.7% | +7.0% |
| ROCEReturn on capital employed | +20.2% | +9.1% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 1.18x | 1.85x |
| Net DebtTotal debt minus cash | $2.4B | $14.6B |
| Cash & Equiv.Liquid assets | $1.7B | $1.1B |
| Total DebtShort + long-term debt | $4.1B | $15.7B |
| Interest CoverageEBIT ÷ Interest expense | 19.90x | 9.56x |
Total Returns (Dividends Reinvested)
BBY leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in BBY five years ago would be worth $6,242 today (with dividends reinvested), compared to $5,797 for DG. Over the past 12 months, DG leads with a +28.0% total return vs BBY's -8.8%. The 3-year compound annual growth rate (CAGR) favors BBY at -1.2% vs DG's -17.5% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -14.0% | -14.0% |
| 1-Year ReturnPast 12 months | -8.8% | +28.0% |
| 3-Year ReturnCumulative with dividends | -3.6% | -43.8% |
| 5-Year ReturnCumulative with dividends | -37.6% | -42.0% |
| 10-Year ReturnCumulative with dividends | +161.1% | +57.2% |
| CAGR (3Y)Annualised 3-year return | -1.2% | -17.5% |
Risk & Volatility
DG leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
DG is the less volatile stock with a 0.43 beta — it tends to amplify market swings less than BBY's 1.08 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. DG currently trades 73.6% from its 52-week high vs BBY's 68.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.08x | 0.43x |
| 52-Week HighHighest price in past year | $84.99 | $158.23 |
| 52-Week LowLowest price in past year | $56.68 | $86.25 |
| % of 52W HighCurrent price vs 52-week peak | +68.9% | +73.6% |
| RSI (14)Momentum oscillator 0–100 | 40.2 | 40.9 |
| Avg Volume (50D)Average daily shares traded | 4.2M | 2.8M |
Analyst Outlook
BBY leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates BBY as "Hold" and DG as "Buy". Consensus price targets imply 27.3% upside for BBY (target: $75) vs 24.5% for DG (target: $145). For income investors, BBY offers the higher dividend yield at 6.45% vs DG's 2.02%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $74.50 | $145.00 |
| # AnalystsCovering analysts | 41 | 50 |
| Dividend YieldAnnual dividend ÷ price | +6.5% | +2.0% |
| Dividend StreakConsecutive years of raises | 8 | 0 |
| Dividend / ShareAnnual DPS | $3.78 | $2.35 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.2% | 0.0% |
BBY leads in 4 of 6 categories (Valuation Metrics, Profitability & Efficiency). DG leads in 2 (Income & Cash Flow, Risk & Volatility).
BBY vs DG: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is BBY or DG a better buy right now?
For growth investors, Dollar General Corporation (DG) is the stronger pick with 5.
2% revenue growth year-over-year, versus 0. 4% for Best Buy Co. , Inc. (BBY). Best Buy Co. , Inc. (BBY) offers the better valuation at 11. 6x trailing P/E (9. 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 — BBY or DG?
On trailing P/E, Best Buy Co.
, Inc. (BBY) is the cheapest at 11. 6x versus Dollar General Corporation at 17. 0x. On forward P/E, Best Buy Co. , Inc. is actually cheaper at 9. 0x.
03Which is the better long-term investment — BBY or DG?
Over the past 5 years, Best Buy Co.
, Inc. (BBY) delivered a total return of -37. 6%, compared to -42. 0% for Dollar General Corporation (DG). Over 10 years, the gap is even starker: BBY returned +161. 1% versus DG's +57. 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 — BBY or DG?
By beta (market sensitivity over 5 years), Dollar General Corporation (DG) is the lower-risk stock at 0.
43β versus Best Buy Co. , Inc. 's 1. 08β — meaning BBY is approximately 153% more volatile than DG relative to the S&P 500. On balance sheet safety, Best Buy Co. , Inc. (BBY) carries a lower debt/equity ratio of 118% versus 185% for Dollar General Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — BBY or DG?
By revenue growth (latest reported year), Dollar General Corporation (DG) is pulling ahead at 5.
2% versus 0. 4% for Best Buy Co. , Inc. (BBY). On earnings-per-share growth, the picture is similar: Dollar General Corporation grew EPS 34. 1% year-over-year, compared to 17. 8% for Best Buy Co. , Inc.. Over a 3-year CAGR, DG leads at 4. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — BBY or DG?
Dollar General Corporation (DG) is the more profitable company, earning 3.
5% net margin versus 2. 6% for Best Buy Co. , Inc. — meaning it keeps 3. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DG leads at 5. 2% versus 3. 3% for BBY. At the gross margin level — before operating expenses — DG leads at 30. 7%, 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.
07Is BBY or DG more undervalued right now?
On forward earnings alone, Best Buy Co.
, Inc. (BBY) trades at 9. 0x forward P/E versus 16. 0x for Dollar General Corporation — 7. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BBY: 27. 3% to $74. 50.
08Which pays a better dividend — BBY or DG?
All stocks in this comparison pay dividends.
Best Buy Co. , Inc. (BBY) offers the highest yield at 6. 5%, versus 2. 0% for Dollar General Corporation (DG).
09Is BBY 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.
43), 2. 0% yield). Both have compounded well over 10 years (DG: +57. 2%, BBY: +161. 1%), 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.
10What are the main differences between BBY and DG?
These companies operate in different sectors (BBY (Consumer Cyclical) and DG (Consumer Defensive)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
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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