FIVE vs DG

For growth investors, Five Below, Inc.

(FIVE) is the stronger pick with 22. 9% revenue growth year-over-year, versus 5. 2% for Dollar General Corporation (DG). Dollar General Corporation (DG) offers the better valuation at 17. 0x trailing P/E (16. 0x forward), making it the more compelling value choice. Analysts rate Five Below, Inc. (FIVE) 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.

On trailing P/E, Dollar General Corporation (DG) is the cheapest at 17.

0x versus Five Below, Inc. at 36. 3x. On forward P/E, Dollar General Corporation is actually cheaper at 16. 0x.

Over the past 5 years, Five Below, Inc.

(FIVE) delivered a total return of +21. 7%, compared to -41. 7% for Dollar General Corporation (DG). Over 10 years, the gap is even starker: FIVE returned +485. 3% versus DG's +60. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Dollar General Corporation (DG) is the lower-risk stock at 0.

43β versus Five Below, Inc. 's 2. 02β — meaning FIVE is approximately 374% more volatile than DG relative to the S&P 500. On balance sheet safety, Five Below, Inc. (FIVE) carries a lower debt/equity ratio of 93% versus 185% for Dollar General Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Five Below, Inc.

(FIVE) is pulling ahead at 22. 9% versus 5. 2% for Dollar General Corporation (DG). On earnings-per-share growth, the picture is similar: Five Below, Inc. grew EPS 40. 4% year-over-year, compared to 34. 1% for Dollar General Corporation. Over a 3-year CAGR, FIVE leads at 15. 7% 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.

Five Below, Inc.

(FIVE) is the more profitable company, earning 7. 5% net margin versus 3. 5% for Dollar General Corporation — meaning it keeps 7. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FIVE leads at 9. 6% versus 5. 2% for DG. At the gross margin level — before operating expenses — FIVE leads at 32. 0%, 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.

On forward earnings alone, Dollar General Corporation (DG) trades at 16.

0x forward P/E versus 36. 7x for Five Below, Inc. — 20. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DG: 24. 6% to $145. 00.

In this comparison, DG (2.

0% yield) pays a dividend. FIVE does not pay a meaningful dividend and should not be held primarily for income.

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). Five Below, Inc. (FIVE) carries a higher beta of 2. 02 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (DG: +60. 4%, FIVE: +485. 3%), 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.

These companies operate in different sectors (FIVE (Consumer Cyclical) and DG (Consumer Defensive)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: FIVE is a mid-cap high-growth stock; DG is a mid-cap deep-value stock. DG pays a dividend while FIVE 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.