TGT vs DG vs WMT vs DLTR vs COST

For growth investors, Dollar Tree, Inc.

(DLTR) is the stronger pick with 10. 4% revenue growth year-over-year, versus -1. 7% for Target Corporation (TGT). Target Corporation (TGT) offers the better valuation at 15. 5x trailing P/E (15. 7x 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.

5x versus Costco Wholesale Corporation at 55. 6x. On forward P/E, Dollar Tree, Inc. is actually cheaper at 14. 4x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Costco Wholesale Corporation wins at 3. 28x versus Dollar Tree, Inc. 's 14. 29x.

Over the past 5 years, Walmart Inc.

(WMT) delivered a total return of +186. 9%, compared to -42. 0% for Dollar General Corporation (DG). Over 10 years, the gap is even starker: COST returned +625. 0% versus DLTR's +17. 8%. 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), Walmart Inc.

(WMT) is the lower-risk stock at 0. 12β versus Target Corporation's 0. 95β — meaning TGT is approximately 717% more volatile than WMT relative to the S&P 500. On balance sheet safety, Costco Wholesale Corporation (COST) carries a lower debt/equity ratio of 28% versus 185% for Dollar General Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Dollar Tree, Inc.

(DLTR) is pulling ahead at 10. 4% versus -1. 7% for Target Corporation (TGT). On earnings-per-share growth, the picture is similar: Dollar Tree, Inc. grew EPS 142. 3% year-over-year, compared to -8. 2% for Target Corporation. Over a 3-year CAGR, DLTR leads at 8. 0% 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 Tree, Inc.

(DLTR) is the more profitable company, earning 6. 6% net margin versus 2. 9% for Costco Wholesale Corporation — meaning it keeps 6. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DLTR leads at 8. 2% versus 3. 8% for COST. At the gross margin level — before operating expenses — DLTR leads at 36. 4%, 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.

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. 28x versus Dollar Tree, Inc. 's 14. 29x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Dollar Tree, Inc. (DLTR) trades at 14. 4x forward P/E versus 49. 5x for Costco Wholesale Corporation — 35. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DLTR: 33. 3% to $129. 00.

In this comparison, TGT (3.

6% yield), DG (2. 0% yield), WMT (0. 7% yield), COST (0. 5% yield) pay a dividend. DLTR does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Walmart Inc.

(WMT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 12), 0. 7% yield, +499. 5% 10Y return). Both have compounded well over 10 years (WMT: +499. 5%, DLTR: +17. 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.

In terms of investment character: TGT is a mid-cap deep-value stock; DG is a mid-cap deep-value stock; WMT is a mega-cap quality compounder stock; DLTR is a mid-cap deep-value stock; COST is a large-cap quality compounder stock. TGT, DG, WMT pay a dividend while DLTR, COST do 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.