|
Related Topics
|
|
Category: Dollar Tree (DLTR) and Dollar General (DG)
Date: 10 August 2020 Stock price of Dollar Tree: $96.49 Stock price of Dollar General: $195.29 Battle of the dollar stocks. We take a look at Dollar Tree (DLTR) and Dollar General (DG)'s stock over the last couple of years as well as investigate which one of these two retailers with 'dollar' in their name is best placed to provide investors with superior returns in future.
|
|
So if one had to buy one of these two retail firms now which one is the best buy? Is there a reason why the stock of Dollar Tree has underperformed against Dollar General? Or does the underperformance of Dollar Tree provide a good opportunity to buy into their stock instead of that of Dollar General? Or is there a reason why Dollar General is outperforming that of Dollar Tree?"
More About Dollar Tree (DLTR)
We have worked hard to create an environment where shopping is fun... a place where our customers can discover new treasures every week... a store where entire families can enjoy hunting for that special something. Every Dollar Tree store is bright and well lit, clean and well organized, and stocked with endless hidden treasures!
Just as important, we continue to offer our customers products they need at extreme values! We carry a broad, exciting mix of merchandise that includes many trusted national and regional brands. Some of the product departments you'll find at Dollar Tree include housewares, glassware, dinnerware, cleaning supplies, candy, snacks, food, health and beauty, toys, gifts, gift bags and wrap, party supplies, stationery, craft supplies, teaching supplies, books, seasonal décor, and so much more. Everything you need for every day, every holiday, every occasion... and every single item is only $1 (or less)!
The best part is that there is probably a Dollar Tree store near you! We are a national American based company with thousands of stores conveniently located in shopping centers and malls in all 48 contiguous states. You can also shop online for larger quantities of the same items you'd find in our stores, plus check out craft and project ideas
Overview of Dollar Tree (DLTR) latest earnings report
Our latest stock valuation of Dollar Tree (DLTR): $81.90
Just as important, we continue to offer our customers products they need at extreme values! We carry a broad, exciting mix of merchandise that includes many trusted national and regional brands. Some of the product departments you'll find at Dollar Tree include housewares, glassware, dinnerware, cleaning supplies, candy, snacks, food, health and beauty, toys, gifts, gift bags and wrap, party supplies, stationery, craft supplies, teaching supplies, books, seasonal décor, and so much more. Everything you need for every day, every holiday, every occasion... and every single item is only $1 (or less)!
The best part is that there is probably a Dollar Tree store near you! We are a national American based company with thousands of stores conveniently located in shopping centers and malls in all 48 contiguous states. You can also shop online for larger quantities of the same items you'd find in our stores, plus check out craft and project ideas
Overview of Dollar Tree (DLTR) latest earnings report
- Net sales: $6.286 billion (up from $5.807 billion for the same quarter in the previous year)
- Net sales increased by 8.24% over the last 12 months
- Cost of sales: $4.491 billion (up from $4.081 billion for the same quarter in the previous year)
- Cost of sales increased by 10.04% over the last 12 months
- Net earnings: $247.6 million (down from $267.9 million for the same quarter in the previous year)
- Diluted earnings per share: $1.04 (down from $1.12 for the same quarter in the previous year)
- PE ratio of Dollar Tree: 21.1
- Diluted number of shares in issue: 237.4 million (down from 239.1 million for the same quarter of the previous year)
- Cash and equivalents: $1.755 billion
- Cash and equivalents per share: $7.39
- Cash and equivalents makes up 8.4% of Dollar Tree's current market capital
- Cash and equivalents makes up 8.6% of Dollar Tree's total assets
- Cash and equivalents per share: $7.39
- Inventories: $3.198 billion
- Inventories makes up 15.6% of Dollar Tree's total assets
- Cash generated from operations for the 1st quarter of 2020: $959 million
- Cash generated from operations per share for the 1 quarters of 2020: $4.04
Our latest stock valuation of Dollar Tree (DLTR): $81.90
More About Dollar General (DG)
Dollar General Corporation has been delivering value to shoppers for more than 80 years. Dollar General helps shoppers Save time. Save money. Every day!® by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares and seasonal items at everyday low prices in convenient neighborhood locations. Dollar General operated 16,278 stores in 44 states as of January 31, 2020. In addition to high-quality private brands, Dollar General sells products from America's most-trusted manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, KimberlyClark, Kellogg's, General Mills, and PepsiCo.
Overview of Dollar General (DG) latest earnings report
valuation $171.40
Overview of Dollar General (DG) latest earnings report
- Total sales: $8.448 billion (up from $6.623 billion from the same quarter of the previous year)
- Sales increased by 27.6% over the last 12 months
- Cost of goods sold: $5.852 billion (up from $4.620 billion for the same quarter of the previous year)
- Cost of goods sold increased by 26.7% over the last 12 months
- Some margin gain for Dollar General as their sales increased at a faster rate than their cost of goods sold
- Net income : $650.446 million (up from $385.013 million for the same quarter of the previous year)
- Diluted income per share: $2.56 (up from $1.48 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 253.627 million (up from 260.265 million for the same quarter of the previous year)
- Cash and cash equivalents: $2.673 billion
- Cash and cash equivalents per share: $10.53
- Cash and cash equivalents makes up 5.7% of Dollar General's market capital
- Cash and cash equivalents makes up 10.7% of Dollar General's total assets
- Cash and cash equivalents per share: $10.53
- Inventories: $4.107 billion
- Inventories makes up 16.5% of Dollar General's total assets
- Stockholders equity in Dollar General: $7.209 billion
- Stockholders equity per share: $28.42
- Dollar General is trading at 6.5 times its stockholders equity which is well outside the expected range of between 2 and 4 times that most firms tend to trade at
valuation $171.40
Dollar Tree store front at night
Dollar Tree (DLTR) stock vs Dollar General (DG) stock performance over the last 5 years
The image below shows the stock price performance of Dollar Tree (DLTR) and Dollar General (DG) over the last 5 years. While both are retailers largely based in the USA the stock price trends of the two firms are very different. Below the stock price returns provided by the two stocks over the last 5 years.
The stock of Dollar General has easily outperformed the stock of Dollar Tree over the last 5 years.
- Dollar General : 170.6%
- Dollar Tree: 44.01%
The stock of Dollar General has easily outperformed the stock of Dollar Tree over the last 5 years.
Dollar Tree (DLTR) stock vs Dollar General (DG) stock performance over the last 5 years
So if one had to buy one of these two retail firms now which one is the best buy? Is there a reason why the stock of Dollar Tree has underperformed against Dollar General? Or does the underperformance of Dollar Tree provide a good opportunity to buy into their stock instead of that of Dollar General? Or is there a reason why Dollar General is outperforming that of Dollar Tree?
Dollar General store front
So let's take a look at the fundamentals and the valuation metrics in order to determine which of these two firms offers the most value at their current stock price.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
Based on this metric Dollar General offers far more value than Dollar Tree. Most firms tend to trade at a ratio of between 2 and 4 times. The higher this ratio the less value a stock offers. A ratio of 6.87 is implying that buying the stock of Dollar General now means you are paying 6.87 times more for the stock than what the stockholders equity per share is worth. But a high stockholders equity per share ratio is still better than a firm that has a stockholders deficit
Next up cash as percentage of stock price:
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
Next up the PE ratio of the stock price:
Looking at all the fundamental metrics above Dollar General wins on the Price/Stockholders equity per share metric, but loses out on the cash as percentage of stock price, where Dollar Tree is the winner, But Dollar General has the stronger cash position with their cash as percentage of total assets being higher than that of Dollar Tree. Dollar General also has the lower PE ratio. Therefore all things considered in the battle between Dollar Tree and Dollar General we rate the stock of Dollar General the winner.
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following:
- Price/Stockholders equity per share for Dollar Tree (DLTR): 0 (Dollar Tree is currently trading at a stockholders deficit)
- Price/Stockholders equity per share for Dollar General (DG): 6.87
Based on this metric Dollar General offers far more value than Dollar Tree. Most firms tend to trade at a ratio of between 2 and 4 times. The higher this ratio the less value a stock offers. A ratio of 6.87 is implying that buying the stock of Dollar General now means you are paying 6.87 times more for the stock than what the stockholders equity per share is worth. But a high stockholders equity per share ratio is still better than a firm that has a stockholders deficit
Next up cash as percentage of stock price:
- Cash as percentage of stock price for Dollar Tree (DLTR): 7.6%
- Cash as percentage of stock price for Dollar General (DG) : 5.4%
Next up lets take a look at the percentage cash on the balance sheet makes up of each group's total assets:
- Cash as percentage of stock price for Dollar Tree (DLTR) : 8.6%
- Cash as percentage of stock price for Dollar General (DG): 10.7%
Next up the PE ratio of the stock price:
- PE ratio for Dollar Tree (DLTR) : 23.2
- PE ratio for Dollar General (DG) : 15.3
Looking at all the fundamental metrics above Dollar General wins on the Price/Stockholders equity per share metric, but loses out on the cash as percentage of stock price, where Dollar Tree is the winner, But Dollar General has the stronger cash position with their cash as percentage of total assets being higher than that of Dollar Tree. Dollar General also has the lower PE ratio. Therefore all things considered in the battle between Dollar Tree and Dollar General we rate the stock of Dollar General the winner.