TGT vs. DG, DLTR, CMG, MELI, CVS, ORLY, SBUX, AZO, TJX, and ROST
Should you be buying Target stock or one of its competitors? The main competitors of Target include Dollar General (DG), Dollar Tree (DLTR), Chipotle Mexican Grill (CMG), MercadoLibre (MELI), CVS Health (CVS), O'Reilly Automotive (ORLY), Starbucks (SBUX), AutoZone (AZO), TJX Companies (TJX), and Ross Stores (ROST). These companies are all part of the "retail/wholesale" sector.
Target (NYSE:TGT) and Dollar General (NYSE:DG) are both large-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, media sentiment, community ranking, risk, institutional ownership, earnings, dividends and analyst recommendations.
Target has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Dollar General has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.
79.7% of Target shares are owned by institutional investors. Comparatively, 91.8% of Dollar General shares are owned by institutional investors. 0.2% of Target shares are owned by company insiders. Comparatively, 0.5% of Dollar General shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Target received 6265 more outperform votes than Dollar General when rated by MarketBeat users. Likewise, 90.05% of users gave Target an outperform vote while only 68.36% of users gave Dollar General an outperform vote.
Target pays an annual dividend of $4.40 per share and has a dividend yield of 2.7%. Dollar General pays an annual dividend of $2.36 per share and has a dividend yield of 1.7%. Target pays out 49.3% of its earnings in the form of a dividend. Dollar General pays out 31.2% 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 a net margin of 4.29% compared to Target's net margin of 3.85%. Target's return on equity of 33.41% beat Dollar General's return on equity.
In the previous week, Dollar General had 20 more articles in the media than Target. MarketBeat recorded 23 mentions for Dollar General and 3 mentions for Target. Target's average media sentiment score of 0.50 beat Dollar General's score of 0.45 indicating that Target is being referred to more favorably in the media.
Target presently has a consensus target price of $181.85, indicating a potential upside of 10.38%. Dollar General has a consensus target price of $153.08, indicating a potential upside of 7.75%. Given Target's stronger consensus rating and higher possible upside, analysts clearly believe Target is more favorable than Dollar General.
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.
Summary
Target beats Dollar General on 13 of the 20 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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