Quick verdict: DG vs WMT in 2026

Overall, Dollar General (DG) appears to hold a significant edge over Walmart (WMT) based on key financial metrics and potential upside as of 2026-05-07, providing a compelling foundation for our dg vs wmt stock comparison 2026. DG emerges as the clear leader for growth, value, and margins, presenting a robust investment profile. While WMT garners a higher percentage of “Buy” ratings from analysts, DG offers substantially greater projected upside according to both consensus price targets and discounted cash flow (DCF) analysis. Not investment advice.

DG vs WMT: key metrics side by side

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

DG vs WMT valuation comparison

When considering the DG vs WMT valuation, Dollar General (DG) appears significantly more attractive based on traditional metrics as of 2026-05-07. DG trades at a trailing twelve-month Price-to-Earnings (P/E) ratio of 16.94x, which is remarkably lower than Walmart’s (WMT) P/E ratio of 47.36x. This substantial difference suggests that investors are paying a much higher premium for each dollar of WMT’s earnings compared to DG’s, indicating DG could be a more undervalued asset in its sector.

Further reinforcing DG’s value proposition is its Price-to-Book (P/B) ratio of 3.01x, which also stands in stark contrast to WMT’s P/B of 10.41x. These figures suggest that DG’s assets are valued considerably lower relative to its market price. The Discounted Cash Flow (DCF) analysis provides a strong indication of potential upside: DG is estimated to have an impressive +189.4% upside to its DCF fair value of $336.77 from its current price of $116.36. In comparison, WMT’s DCF fair value of $148.11 implies a more modest upside of +13.9% from its current price of $130.08. This makes DG a clear choice for value investors focused on intrinsic value and potential price appreciation.

DG vs WMT growth comparison

In the DG vs WMT growth comparison, Dollar General (DG) shows a slight but notable edge in recent top-line expansion. DG reported a year-over-year revenue growth of +5.2%, outpacing Walmart’s (WMT) +4.7% growth. While both companies operate within the mature consumer defensive sector and are massive in their own right, DG’s slightly faster growth indicates a stronger momentum, particularly given its smaller revenue base of $42.72 billion compared to WMT’s colossal $713.16 billion. This difference in growth rates, even if marginal, can compound over time and reflects DG’s ability to capture market share or expand its reach effectively.

Beyond just revenue, DG also demonstrates superior profitability margins which can fuel future growth initiatives. DG’s EBITDA margin stands at 7.61%, significantly higher than WMT’s 6.52%. Similarly, DG’s net margin of 3.54% surpasses WMT’s 3.07%. These stronger margins imply that DG is more efficient at converting its sales into operating and net income, providing more capital for reinvestment, debt reduction, or shareholder returns. This higher efficiency could enable DG to sustain its growth momentum or even accelerate it, indicating stronger underlying fundamentals in its operations.

DG vs WMT profitability

An analysis of DG vs WMT profitability reveals that Dollar General (DG) holds a distinct advantage in converting sales into profit. DG boasts a net profit margin of 3.54%, which is higher than Walmart’s (WMT) 3.07%. This indicates that for every dollar of revenue, DG retains more profit after all expenses, including taxes. Furthermore, DG’s EBITDA margin of 7.61% significantly outpaces WMT’s 6.52%, reflecting greater operational efficiency before accounting for depreciation and amortization. While Return on Equity (ROE) is N/A% for both companies based on the provided data, the other margin metrics clearly illustrate DG’s superior ability to generate profit from its sales.

Perhaps one of the most compelling aspects of DG’s profitability is its Free Cash Flow (FCF) yield. DG exhibits an impressive FCF yield of 12.03%, demonstrating its strong capacity to generate cash after accounting for capital expenditures. This is vastly superior to WMT’s FCF yield of 1.44%. A higher FCF yield suggests that DG is generating significantly more cash relative to its market capitalization, which can be utilized for growth investments, debt repayment, or returning value to shareholders through buybacks or dividends. This substantial difference in FCF yield highlights that DG generates considerably more cash, offering greater financial flexibility and robustness.

Analyst ratings: DG vs WMT

When examining analyst ratings for DG vs WMT, both companies generally receive a “Buy” consensus, but with differing levels of confidence and implied upside. For Dollar General (DG), 50 analysts cover the stock, with 54.0% recommending a “Buy.” The consensus price target for DG is $145, representing a substantial implied upside of +24.6% from its current price of $116.36. This indicates that while not every analyst is bullish, a significant portion sees considerable room for the stock to grow.

In contrast, Walmart (WMT) enjoys a higher percentage of “Buy” ratings, with 71.9% out of 64 analysts recommending it. This broader analyst confidence reflects WMT’s market leadership and perceived stability. However, the consensus price target for WMT is $137.22, implying a more modest upside of +5.5% from its current price of $130.08. Therefore, while analysts collectively show a stronger inclination to buy WMT, DG is the stock that offers substantially higher expected price appreciation according to their collective projections for 2026.

Should I buy DG or WMT stock in 2026?

For investors prioritizing growth in 2026, Dollar General (DG) presents a more compelling case in the dg vs wmt stock comparison 2026. DG has demonstrated slightly higher revenue growth at +5.2% compared to WMT’s +4.7%. More significantly, DG boasts superior profitability margins, including a net margin of 3.54% and an EBITDA margin of 7.61%, both outperforming WMT. These stronger operational efficiencies mean DG is converting sales into profit more effectively, which can sustainably fuel future expansion and shareholder returns, making it an attractive option for growth-oriented portfolios.

When considering the dg vs wmt fundamentals and valuation for value investors, DG stands out as the clear winner. Its P/E ratio of 16.94x and P/B ratio of 3.01x are considerably lower than WMT’s P/E of 47.36x and P/B of 10.41x, suggesting DG is currently trading at a much more attractive multiple relative to its earnings and book value. The Discounted Cash Flow (DCF) analysis further cements this perspective, projecting a remarkable +189.4% upside for DG, in stark contrast to WMT’s +13.9%. This profound difference in implied value makes DG a potentially undervalued opportunity for those seeking deep value.

For income-focused investors, neither DG nor WMT are primary dividend plays, as both offer relatively low dividend yields. However, if forced to choose between them, Dollar General edges out Walmart with a dividend yield of 0.02% compared to WMT’s 0.01%. While this difference is marginal and unlikely to be the primary driver for an investment decision, it still positions DG slightly ahead for income. Overall, the decision on should i buy dg or wmt stock 2026 hinges on investment objectives, with DG offering greater potential for growth and significant value appreciation. This is not investment advice.

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FAQ: DG vs WMT