TGT vs. DG, DLTR, BIG, BJ, FIVE, MNSO, OLLI, PSMT, WMT, and COST
Should you be buying Target stock or one of its competitors? The main competitors of Target include Dollar General (DG), Dollar Tree (DLTR), Big Lots (BIG), BJ's Wholesale Club (BJ), Five Below (FIVE), MINISO Group (MNSO), Ollie's Bargain Outlet (OLLI), PriceSmart (PSMT), Walmart (WMT), and Costco Wholesale (COST). These companies are all part of the "variety stores" industry.
Dollar General (NYSE:DG) and Target (NYSE:TGT) are both large-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, community ranking, analyst recommendations, valuation, dividends, risk, profitability, earnings and media sentiment.
Target has higher revenue and earnings than Dollar General. Target is trading at a lower price-to-earnings ratio than Dollar General, indicating that it is currently the more affordable of the two stocks.
Dollar General currently has a consensus target price of $151.48, indicating a potential upside of 10.64%. Target has a consensus target price of $180.41, indicating a potential upside of 15.53%. Given Dollar General's stronger consensus rating and higher probable upside, analysts clearly believe Target is more favorable than Dollar General.
Target has a net margin of 3.87% compared to Target's net margin of 3.85%. Dollar General's return on equity of 31.91% beat Target's return on equity.
Dollar General has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Target has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.
91.8% of Dollar General shares are owned by institutional investors. Comparatively, 79.7% of Target shares are owned by institutional investors. 0.5% of Dollar General shares are owned by company insiders. Comparatively, 0.2% of Target shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Target received 6272 more outperform votes than Dollar General when rated by MarketBeat users. Likewise, 90.01% of users gave Target an outperform vote while only 68.20% of users gave Dollar General an outperform vote.
Dollar General pays an annual dividend of $2.36 per share and has a dividend yield of 1.7%. Target pays an annual dividend of $4.40 per share and has a dividend yield of 2.8%. Dollar General pays out 34.4% of its earnings in the form of a dividend. Target pays out 49.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dollar General has increased its dividend for 1 consecutive years and Target has increased its dividend for 53 consecutive years. Target is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, Dollar General had 27 more articles in the media than Target. MarketBeat recorded 52 mentions for Dollar General and 25 mentions for Target. Target's average media sentiment score of 0.33 beat Dollar General's score of 0.31 indicating that Dollar General is being referred to more favorably in the media.
Summary
Target beats Dollar General on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TGT and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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