Would you buy Dollar General or Dollar tree today?
8/21/2025 00:11am
**Dollar General (DG) appears to be the better investment option compared to Dollar Tree (DLTR) at this time.** Here's why:
1. **Financial Performance**: Dollar General has shown stronger financial performance with a higher revenue growth rate and net income growth rate compared to Dollar Tree. Dollar General's revenue grew by 12.5% year-over-year to $40.6 billion in 2025, while Dollar Tree's net sales increased by 11.3% to $4.6 billion in the first quarter of 2025. Additionally, Dollar General's diluted EPS grew by 0.08% compared to Dollar Tree's 0.17%.
|code|Ticker|Name|Date|P/E(TTM)|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|---|
|DG|DG.N|Dollar General|20250630||1.0210361E10|3.7419E8|1.7|169|
|DLTR|DLTR.O|Dollar Tree|20250630||7.3788E9|1.324E8|0.62|185|
|DG|DG.N|Dollar General|20250820|21.509955||||169|
|DLTR|DLTR.O|Dollar Tree|20250820|-7.859282||||185|
|DG|DG.N|Dollar General|20250930||1.0183428E10|1.96529E8|0.89|169|
|DLTR|DLTR.O|Dollar Tree|20250930||7.5682E9|2.333E8|1.08|185|
|DG|DG.N|Dollar General|20251231||1.0304498E10|1.91217E8|0.87|169|
|DLTR|DLTR.O|Dollar Tree|20251231||4.9998E9|-3.6959E9|-17.17|185|
|DG|DG.N|Dollar General|20260331||1.0435979E10|3.91928E8|1.78|169|
|DLTR|DLTR.O|Dollar Tree|20260331||4.6397E9|3.434E8|1.61|185|
2. **Strategic Initiatives**: Dollar General has been strategic in its store remodels and partnerships, such as its partnership with DoorDash to expand SNAP food access. This indicates a forward-thinking approach to growth and customer satisfaction.
3. **Analyst Sentiment**: Analysts have a more positive outlook on Dollar General, with a higher average price target of $116.65 compared to $105.9 for Dollar Tree. This suggests that analysts believe Dollar General has greater upside potential.
4. **Market Position**: Dollar General is positioned well in the consumer discretionary sector, which is expected to continue to grow despite macroeconomic pressures. The company's strong performance and strategic initiatives are well-aligned with this growth trajectory.
5. **Valuation**: Dollar General's P/E ratio is higher than Dollar Tree's, but this can be justified by its stronger growth prospects and higher return on equity (ROE) compared to Dollar Tree. A higher P/E ratio indicates that investors are willing to pay more for each dollar of earnings, which can be a positive sign if the company continues to grow at a strong rate.
6. **Risk Factors**: Dollar General faces challenges such as potential impacts from tariffs, but the company has shown resilience in mitigating these effects. Additionally, the retailer's stock has experienced volatility, but it has also shown strong performance and strategic responses to market changes.
In conclusion, while both Dollar General and Dollar Tree are retail companies, Dollar General's stronger financial performance, strategic initiatives, and positive analyst sentiment make it the more attractive investment option at this time.