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.
Dollar General (NYSE:DG) and Target (NYSE:TGT) are both large-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, media sentiment, dividends, analyst recommendations, community ranking and institutional ownership.
Dollar General currently has a consensus price target of $153.08, suggesting a potential upside of 4.54%. Target has a consensus price target of $181.85, suggesting a potential upside of 8.59%. Given Dollar General's stronger consensus rating and higher probable upside, analysts clearly believe Target is more favorable than Dollar General.
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 insiders. Comparatively, 0.2% of Target shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dollar General has a net margin of 4.29% compared to Dollar General's net margin of 3.85%. Dollar General's return on equity of 33.41% beat Target's return on equity.
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.
Dollar General has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Target has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.
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.
In the previous week, Dollar General had 30 more articles in the media than Target. MarketBeat recorded 39 mentions for Dollar General and 9 mentions for Target. Dollar General's average media sentiment score of 0.73 beat Target's score of 0.09 indicating that Target is being referred to more favorably in the news media.
Dollar General pays an annual dividend of $2.36 per share and has a dividend yield of 1.6%. Target pays an annual dividend of $4.40 per share and has a dividend yield of 2.6%. Dollar General pays out 31.2% of its earnings in the form of a dividend. Target pays out 49.3% 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 raised its dividend for 1 consecutive years and Target has raised its dividend for 53 consecutive years. Target is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
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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