Quick verdict: CHD vs DG in 2026

CHD vs DG in 2026 presents an interesting contrast, with Dollar General (DG) appearing to hold an overall edge, particularly in growth and valuation metrics. DG leads with stronger revenue growth and more attractive valuation multiples, while Church & Dwight (CHD) maintains superior profitability margins. Analysts also show a slightly more optimistic outlook and greater upside potential for DG, making it a potentially more dynamic investment choice for those prioritizing growth and value in the consumer defensive sector. Not investment advice.

CHD vs DG: key metrics side by side

Full side-by-side comparison of CHD and DG across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-07.

CHD vs DG valuation comparison

When performing a CHD vs DG valuation comparison, a key metric to consider is the Price-to-Earnings (P/E) ratio. Church & Dwight (CHD) currently trades at a P/E of 30.17x, which is considerably higher than Dollar General’s (DG) more modest P/E of 16.65x. This significant difference suggests that the market is willing to pay a premium for CHD’s earnings, possibly due to its stable position in the branded consumer staples market and perceived lower risk. Conversely, DG’s lower P/E ratio could imply that its earnings are valued less expensively by investors, potentially pointing to an undervalued opportunity or higher market skepticism regarding its future earnings growth, despite its higher reported revenue growth.

Further extending the CHD vs DG valuation, the Price-to-Book (P/B) ratio also positions DG as the more attractively valued stock at 2.96x, compared to CHD’s 5.28x. This indicates that Dollar General’s assets are valued at a lower multiple relative to their book value, potentially offering a greater margin of safety. Moreover, a Discounted Cash Flow (DCF) analysis reveals a substantial intrinsic value upside for DG at +194.5%, projecting a fair value of $336.77. While CHD also shows a healthy DCF upside of +51.9% to $142.01, DG’s potential appreciation based on its future cash flows is considerably more pronounced. Based on these metrics, Dollar General appears to be the cheaper stock, offering a more compelling entry point for value-conscious investors in 2026.

CHD vs DG growth comparison

When undertaking a CHD vs DG growth comparison, Dollar General (DG) clearly exhibits stronger top-line momentum. DG reported a year-over-year revenue growth rate of +5.2%, significantly outpacing Church & Dwight’s (CHD) more modest +1.6%. This higher growth rate for Dollar General, a prominent discount retailer, indicates its effective strategy in expanding its market presence and capturing a larger share of consumer spending, particularly in an economic environment where value and convenience are key drivers for shoppers. Church & Dwight, operating in the consumer staples sector with established brands, typically experiences more stable but slower growth, often driven by incremental product innovations and market penetration rather than aggressive store expansion.

Furthermore, Dollar General’s substantially larger annual revenue of $42.72 billion compared to Church & Dwight’s $6.20 billion highlights DG’s considerable operational scale. While both companies operate within the consumer defensive sphere, their growth trajectories reflect their distinct business models. DG’s focus on opening new stores and catering to everyday essential needs positions it for continued expansion, which is evident in its stronger revenue growth. Investors prioritizing dynamic expansion and robust revenue increases in their portfolio for 2026 would likely find Dollar General’s growth profile more compelling, suggesting a stronger forward momentum as the company capitalizes on its expansive retail strategy.

CHD vs DG profitability

In evaluating CHD vs DG profitability, Church & Dwight (CHD) demonstrates a clear advantage in its margin performance. CHD’s net margin of 11.81% is significantly higher than Dollar General’s (DG) 3.54%, indicating that Church & Dwight converts a much larger percentage of its revenue into actual profit. This superior efficiency is further reinforced by CHD’s impressive EBITDA margin of 20.62%, which dwarfs DG’s 7.61%. These robust margins are characteristic of a branded consumer goods company like Church & Dwight, which benefits from strong brand recognition, premium pricing power, and efficient supply chain management, allowing it to retain a greater portion of its sales as profit.

However, a closer look at cash generation reveals an interesting nuance in CHD vs DG profitability. Despite CHD’s higher net and EBITDA margins, Dollar General boasts a considerably higher Free Cash Flow (FCF) yield of 12.24% compared to Church & Dwight’s 4.82%. This suggests that while DG operates on thinner profit margins, it generates more cash flow relative to its market capitalization, possibly due to its asset-light retail model or more efficient working capital management. Both companies report N/A for Return on Equity (ROE), preventing a direct comparison on that specific metric. Therefore, while CHD excels in terms of traditional profit margins, DG’s stronger FCF yield indicates a robust ability to convert sales into available cash, which is vital for long-term growth and shareholder returns.

Analyst ratings: CHD vs DG

Examining the analyst ratings for CHD vs DG provides valuable insight into market sentiment for both stocks. Church & Dwight (CHD) currently holds a consensus “Buy” rating from a pool of 34 analysts. Of these, 52.9% recommend a “Buy” for CHD, with a collective price target set at $103.8. This target implies a projected upside of +11.0% from its current trading price of $93.51. The Financial Modeling Prep (FMP) rating for CHD is B+, signaling a solid fundamental outlook according to their proprietary analytical framework. This indicates a moderately positive sentiment, reflecting confidence in its stable business operations and well-established brand portfolio.

In comparison, Dollar General (DG) also carries a consensus “Buy” rating, but from a larger cohort of 50 analysts. A slightly higher percentage, 54.0%, have issued a “Buy” recommendation for DG, suggesting a marginally stronger conviction among the analyst community. Their collective price target is notably more optimistic at $145, implying a significant upside potential of +26.8% from its current price of $114.36. Like CHD, DG also receives an FMP rating of B+, suggesting comparable fundamental strength. However, the greater number of analysts covering DG and the substantially higher projected upside from its consensus price target indicate a more robust and optimistic outlook for Dollar General among the broader analyst community for 2026.

Should I buy CHD or DG stock in 2026?

For growth-oriented investors contemplating should I buy CHD or DG stock in 2026, Dollar General (DG) presents a more compelling narrative. DG’s year-over-year revenue growth of 5.2% significantly outstrips Church & Dwight’s (CHD) more conservative 1.6%. This indicates a stronger fundamental momentum for the discount retailer, which is effectively expanding its footprint and capturing a larger share of consumer spending in a value-conscious market. Furthermore, analyst consensus points to a considerably higher price target upside for DG at +26.8% compared to CHD’s +11.0%, reinforcing the view that DG has greater growth potential in the near to medium term within the consumer defensive sector.

Value investors seeking to identify attractively priced opportunities in the market might also find DG more appealing when assessing CHD vs DG fundamentals and valuation. Dollar General’s P/E ratio of 16.65x is substantially lower than CHD’s 30.17x, and its P/B ratio of 2.96x is also more favorable than CHD’s 5.28x. Crucially, a discounted cash flow (DCF) analysis suggests a massive intrinsic value upside of +194.5% for DG, compared to +51.9% for CHD. This comprehensive valuation analysis indicates that DG offers a better entry point with greater potential for price appreciation based on its underlying fundamental value.

Regarding income generation, neither CHD nor DG stands out as a primary choice for dividend-focused investors. Church & Dwight offers a minimal dividend yield of 0.01%, while Dollar General provides a slightly higher but still very low yield of 0.02%. Both yields are negligible for investors whose primary objective is generating regular income from their portfolios. Therefore, the decision on should I buy CHD or DG stock in 2026 should primarily hinge on growth and value considerations rather than dividend prospects, with DG offering a stronger overall proposition in terms of both growth and relative value. This is not investment advice.

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