{"id":10457,"date":"2022-10-03T23:56:00","date_gmt":"2022-10-03T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=10457"},"modified":"2025-06-27T07:55:34","modified_gmt":"2025-06-26T23:55:34","slug":"dollar-general-dollar-tree","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/","title":{"rendered":"Dollar General vs. Dollar Tree"},"content":{"rendered":"\n<p>I mentioned Dollar General (ticker: DG) and Dollar Tree  (ticker: DLTR) in my book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010935641?sloc=main\" target=\"_blank\" rel=\"noreferrer noopener\">The rule of 10 baggers<\/a>&#8220;. In 5-4, I also have a in deep analysis of <a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/27\/costco-has-been-disrupting-retail-industry\/\" target=\"_blank\" rel=\"noreferrer noopener\">Costco (ticker: COST)<\/a>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/#Commonalityn\" >Commonalityn<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/#in-Off-the-radar\" >in-Off-the-radar<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/#Business_commonalities\" >Business commonalities<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/#The_differences\" >The differences<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/#Dollar_General\" >Dollar General<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/#Dollar_Tree\" >Dollar Tree<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/#Business_performance_and_valuation\" >Business performance and valuation<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/#How_is_the_business_performing\" >How is the business performing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/#Stock_valuation\" >Stock valuation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/#Dollar_General_is_a_better_bet\" >Dollar General is a better bet<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/#Investors_prefer_Dollar_General\" >Investors prefer Dollar General<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/#Dollar_General_pays_dividend\" >Dollar General pays dividend<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Commonalityn\"><\/span>Commonalityn<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"in-Off-the-radar\"><\/span>in-Off-the-radar<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>These two companies continued to expand their business over the past decade. However, they attracted fewer media report because most media get used to report the mega wholesale retailers like Walmart (ticker: WMT)&nbsp;or <a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/27\/costco-has-been-disrupting-retail-industry\/\" target=\"_blank\" rel=\"noreferrer noopener\">Costco (ticker: COST)<\/a>, or e-commerce and technology giant Amazon (ticker: AMZN) and look down these smaller brick-and-mortar retail chian store targeting lower-income customers.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_commonalities\"><\/span>Business commonalities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Dollar General (ticker: DG) and Dollar Tree (ticker: DLTR) are the two largest American retailers with many commonalities, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Discounted and low-priced store retail store chains, especially in suburbs areas and lower income customers.<\/li>\n\n\n\n<li>Inflation could be the tailwinds for both stocks because both retailers usually become popular destinations during economic downturns as cash-strapped shoppers hunt for bargains.<\/li>\n\n\n\n<li>Traditionally been good defensive stocks.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_differences\"><\/span>The differences<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dollar_General\"><\/span>Dollar General<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Dollar General is not actually a &#8220;dollar&#8221; store, more precisely it should be a discounted chain store.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dollar_Tree\"><\/span>Dollar Tree<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As compared to Dollar Gernal, Dollar Tree previously sold all of its products for US$ 1.0, but raised to US$ 1.25 in 2021.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.dollartreeinfo.com\/news-releases\/news-release-details\/dollar-tree-completes-acquisition-family-dollar\" target=\"_blank\" rel=\"noreferrer noopener\">Dollar Tree acquired Family Dollar in 2015<\/a>, Family Dollar sells most of its products for less than $10. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_performance_and_valuation\"><\/span>Business performance and valuation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_is_the_business_performing\"><\/span>How is the business performing?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Year 2021<\/td><td>Dollar General <\/td><td>Dollar Tree<\/td><\/tr><tr><td>Revenue<\/td><td>34,220.4 million (+1.4%)<\/td><td>26,321.2 million (+3.18%)<\/td><\/tr><tr><td>Gross margin<\/td><td>31.6%<\/td><td>29.43%<\/td><\/tr><tr><td>Operating margin<\/td><td>9.42%<\/td><td>7.02%<\/td><\/tr><tr><td>Net margin<\/td><td>7.01%<\/td><td>5.04%<\/td><\/tr><tr><td>Total stores<\/td><td>18,356<\/td><td>16,162 <\/td><\/tr><tr><td>2016-2021 revenue CAGR <\/td><td>+9.2%<\/td><td>+4.9%<\/td><\/tr><tr><td>2016 gross margin<\/td><td>30.8%<\/td><td>37.3%<\/td><\/tr><tr><td>2016-2021 EPS CAGR <\/td><td>+18.1%<\/td><td>+8.9%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_valuation\"><\/span>Stock valuation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Index<\/td><td>Dollar General <\/td><td>Dollar Tree<\/td><\/tr><tr><td>Share price<\/td><td>230.8<\/td><td>150.09<\/td><\/tr><tr><td>Market capitalization<\/td><td>52.391 billion<\/td><td>33.704billion<\/td><\/tr><tr><td>P\/E<\/td><td>23.66<\/td><td>22.87<\/td><\/tr><tr><td>P\/S<\/td><td>1.57<\/td><td>1.31<\/td><\/tr><tr><td>Dividend yield<\/td><td>0.95%<\/td><td>0%<\/td><\/tr><tr><td>Share performance in past 5 years<\/td><td>+230%<\/td><td>+120%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dollar_General_is_a_better_bet\"><\/span>Dollar General is a better bet<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Investors_prefer_Dollar_General\"><\/span>Investors prefer Dollar General<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>From above two tables, Dollar General attracted more investors. The reasons might be:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Focus on rural areas exposed it to less competition<\/li>\n\n\n\n<li>Grow faster<\/li>\n\n\n\n<li>Better growth rate on revenue, EPS and margin rate<\/li>\n\n\n\n<li>Gross margins improved<\/li>\n\n\n\n<li>Grow organically, not through acquisitions<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"154\" height=\"100\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2022\/10\/Skitterphoto-1600x1200-1.jpg\" alt=\"Dollar General\" class=\"wp-image-14497\"\/><figcaption class=\"wp-element-caption\">credit: Skitterphoto<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dollar_General_pays_dividend\"><\/span>Dollar General pays dividend<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>While both companies are trading with same value multiples, Dollar General has an edge of paying dividends of nearly 1%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/03\/dollar-general-dollar-tree\/\">Dollar General vs. Dollar Tree<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/06\/26\/costcos-valuation\/\">Why is Costco\u2019s valuation so staggering? <\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/09\/williams-sonoma-surged\/\">Upscale retailer Williams-Sonoma, stock surged in recent years, What\u2019s special?<\/a>&#8220;<\/li>\n\n\n\n<li> &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/27\/costco-moats-difference\/\" target=\"_blank\" rel=\"noreferrer noopener\">Costco&#8217;s moats, and the Differences from Other Competitors<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/02\/02\/how-costco-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Costco make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/16\/amazon-vs-alibaba\/\" target=\"_blank\" rel=\"noreferrer noopener\">Amazon vs. Alibaba<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/21\/why-shopify-is-so-killing\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why Shopify is so killing?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/26\/shopify-the-only-rival-admitted-by-the-founder-of-amazon-how-does-it-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">Shopify, the only rival admitted by the founder of Amazon, how does it make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/14\/discover-shopify-early\/\">Why is it difficult for investors to discover Shopify potential early?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/23\/sea-shopee-southeast-asia-most-valuable-company\/\" target=\"_blank\" rel=\"noreferrer noopener\">Sea, the parent company of Shopee, the most valuable company in Southeast Asia<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/02\/mercadolibre-introduction\/\" target=\"_blank\" rel=\"noreferrer noopener\">Latin America&#8217;s e-commerce dominant MercadoLibre<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/12\/mercadolibre-keeps-delivery\/\" target=\"_blank\" rel=\"noreferrer noopener\">MercadoLibre that Amazon cannot beat. Why it keeps delivery?<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Dollar General (ticker: DG) and Dollar Tree (ticker: DLTR) are the two largest American retailers with many commonalities, I mentioned Dollar General in my book &#8220;The rule of 10 baggers&#8221;.<\/p>\n","protected":false},"author":1,"featured_media":14497,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[128,163,130,88],"tags":[227,215,820,821,219],"class_list":["post-10457","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail","category-dividend","category-ecommerce","category-acquisition","tag-amzn","tag-cost","tag-dg","tag-dltr","tag-wmt"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/10457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=10457"}],"version-history":[{"count":39,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/10457\/revisions"}],"predecessor-version":[{"id":37115,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/10457\/revisions\/37115"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/14497"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=10457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=10457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=10457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}