TGT vs DG

For growth investors, Dollar General Corporation (DG) is the stronger pick with 5.

2% revenue growth year-over-year, versus -1. 7% for Target Corporation (TGT). Target Corporation (TGT) offers the better valuation at 15. 8x trailing P/E (16. 1x 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.

On trailing P/E, Target Corporation (TGT) is the cheapest at 15.

8x versus Dollar General Corporation at 17. 1x. On forward P/E, Target Corporation is actually cheaper at 16. 1x.

Over the past 5 years, Target Corporation (TGT) delivered a total return of -29.

5%, compared to -40. 6% for Dollar General Corporation (DG). Over 10 years, the gap is even starker: TGT returned +107. 8% versus DG's +62. 5%. 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 Target Corporation's 0. 95β — meaning TGT is approximately 124% more volatile than DG relative to the S&P 500. On balance sheet safety, Target Corporation (TGT) carries a lower debt/equity ratio of 35% versus 185% for Dollar General Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Dollar General Corporation (DG) is pulling ahead at 5.

2% versus -1. 7% for Target Corporation (TGT). On earnings-per-share growth, the picture is similar: Dollar General Corporation grew EPS 34. 1% year-over-year, compared to -8. 2% for Target Corporation. 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.

Dollar General Corporation (DG) is the more profitable company, earning 3.

5% net margin versus 3. 5% for Target Corporation — 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 4. 9% for TGT. 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.

On forward earnings alone, Target Corporation (TGT) trades at 16.

1x forward P/E versus 16. 1x for Dollar General Corporation — 0. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DG: 23. 9% to $145. 00.

All stocks in this comparison pay dividends.

Target Corporation (TGT) offers the highest yield at 3. 5%, versus 2. 0% for Dollar General Corporation (DG).

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: +62. 5%, TGT: +107. 8%), 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.

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.

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.