Analyzing Dollar General (DG) and Its Rivals

Dollar General (NYSE:DG) is one of 149 publicly-traded companies in the “Consumer Staples Distribution & Retail” industry, but how does it weigh in compared to its competitors? We will compare Dollar General to similar businesses based on the strength of its risk, valuation, dividends, profitability, analyst recommendations, institutional ownership and earnings.

Dividends

Dollar General pays an annual dividend of $2.36 per share and has a dividend yield of 1.7%. Dollar General pays out 30.7% of its earnings in the form of a dividend. As a group, “Consumer Staples Distribution & Retail” companies pay a dividend yield of 3.8% and pay out 36.7% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Dollar General and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dollar General	$43.64 billion	$1.51 billion	17.95
Dollar General Competitors	$36.50 billion	$846.26 million	16.08

Dollar General has higher revenue and earnings than its competitors. Dollar General is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Dollar General and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dollar General	3.90%	18.93%	5.21%
Dollar General Competitors	-25.86%	3.87%	2.96%

Insider and Institutional Ownership

91.8% of Dollar General shares are owned by institutional investors. Comparatively, 45.0% of shares of all “Consumer Staples Distribution & Retail” companies are owned by institutional investors. 0.6% of Dollar General shares are owned by company insiders. Comparatively, 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Dollar General has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500. Comparatively, Dollar General’s competitors have a beta of 0.44, suggesting that their average share price is 56% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Dollar General and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollar General	1	16	12	0	2.38
Dollar General Competitors	2243	8273	10048	459	2.41

Dollar General currently has a consensus price target of $137.96, suggesting a potential downside of 0.03%. As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 59.30%. Given Dollar General’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Dollar General has less favorable growth aspects than its competitors.

Summary

Dollar General beats its competitors on 8 of the 15 factors compared.

About Dollar General

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine. The company's consumable products also comprise snacks, such as candies, cookies, crackers, salty snacks, and carbonated beverages; health and beauty products, including over-the-counter medicines and personal care products, such as soaps, body washes, shampoos, cosmetics, and dental hygiene and foot care products; pet supplies and pet food; and tobacco products. In addition, it offers seasonal products comprising holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, and automotive and home office supplies; and home products that include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, and bed and bath soft goods. Further, the company provides apparel, which comprise basic items for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.