Dollar General or Walmart: Which Stock Has More Upside?

-6.61%
Downside
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Market
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Trefis
WMT: Walmart logo
WMT
Walmart

Walmart surged 6.5% during the past Day. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Dollar General gives you more. Dollar General (DG) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Walmart (WMT) stock, suggesting you may be better off investing in DG

  • DG’s quarterly revenue growth was 5.1%, vs. WMT’s 4.8%.
  • In addition, its Last 12 Months revenue growth came in at 5.0%, ahead of WMT’s 4.2%.
  • DG leads on profitability over both periods – LTM margin of 4.3% and 3-year average of 5.9%.

These differences become even clearer when you look at the financials side by side. The table highlights how WMT’s fundamentals stack up against those of DG on growth, margins, momentum, and valuation multiples.

Valuation & Performance Overview

  WMT DG Preferred
     
Valuation      
P/EBIT Ratio 29.5 12.3 DG
     
Revenue Growth      
Last Quarter 4.8% 5.1% DG
Last 12 Months 4.2% 5.0% DG
Last 3 Year Average 5.7% 5.7% DG
     
Operating Margins      
Last 12 Months 4.2% 4.3% DG
Last 3 Year Average 4.0% 5.9% DG
     
Momentum      
Last 3 Year Return 122.2% -58.7% WMT

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: WMT Revenue Comparison | DG Revenue Comparison
See more margin details: WMT Operating Income Comparison | DG Operating Income Comparison

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See detailed fundamentals on Buy or Sell DG Stock and Buy or Sell WMT Stock. Below we compare market return and related metrics across years.

Historical Market Performance

  2020 2021 2022 2023 2024 2025 Total [1] Avg Best
Returns
WMT Return 23% 2% -0% 13% 74% 19% 194% <===
DG Return 36% 13% 6% -44% -43% 36% -30%  
S&P 500 Return 16% 27% -19% 24% 23% 11% 102%  
Monthly Win Rates [3]
WMT Win Rate 58% 58% 50% 67% 83% 60%   63%  
DG Win Rate 58% 50% 58% 33% 25% 60%   48%  
S&P 500 Win Rate 58% 75% 42% 67% 75% 70%   64% <===
Max Drawdowns [4]
WMT Max Drawdown -12% -12% -18% -3% -1% -9%   -9% <===
DG Max Drawdown -13% -15% -20% -58% -45% -9%   -27%  
S&P 500 Max Drawdown -31% -1% -25% -1% -2% -15%   -12%  

[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/20/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year

No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read DG Dip Buyer Analyses to see how the stock has fallen and recovered in the past.

Still not sure about WMT or DG? Consider portfolio approach.

Portfolios Are The Smarter Way To Invest

Individual stocks are unpredictable. A smart portfolio keeps you invested, limits downside shocks, and provides upside exposure

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.