Verdict: Side-by-side breakdown using the Bull Rankings model. DG scored 60.0, COST scored 47.7 — DG leads.
Compare another set
DG
Dollar General Corporation
Discount Stores · Quality-Growth
60
$127.23 · $28.1B
fundamentals as of
Score gap
12.3
DG leads
COST
Costco Wholesale Corporation
Discount Stores · Quality-Growth
47.7
$946.92 · $419.6B
fundamentals as of
At a glance · who leads each dimension, on the model's own rules
CheapestDG16.5x
Fastest growthCOST+8.2%
Strongest balance sheetCOST0.28
Highest qualityCOST79 / 100
Largest discount to fair valueDG-9%
Side by side · every name on one set of axes
Growth against the P/E multiple. Up and to the right is cheaper and faster — the quality-growth idea in one picture. Points beyond the axis are pinned to the edge and marked off-scale rather than allowed to compress everything else.
The model, pillar by pillar (0–100 each)
DG
stronger →← stronger
COST
62
Qualityreturns · margins · balance sheet
79
60
Growthrevenue & earnings expansion
69
59
Valuevaluation vs sector peers
20
COST is stronger on 2 of 3 pillars.
Fundamentals, head-to-head
DG
COST
$2.0bB
FCF
$8.8bB+
+5.2%C+
Rev
+8.2%B
1.70C
D/E
0.28A-
16.5xB+
P/E
45.6xC
1.55C+
PEG
4.77D
Winner per row is the stronger grade; where grades tie, the better figure breaks it. A true tie or a missing value shows no highlight.
Valuation · DCF cross-check
DG
COST
9% below
Price vs fair valuelower is cheaper
153% above
~2%/yr
Growth the price impliesyr-1 FCF growth, fading to 4% · lower = less priced in
~31%/yr
+8%
1-yr DCF upside
-63%
+10%
5-yr DCF upside
-60%
+13%
10-yr DCF upside
-56%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
DG
No notable signals flagged.
COST
Why this score
Raising its dividend
Durable high returns
The companies
DGDollar General Corporation
Discount Stores · $127.23 · beta 0.23
Why now
Discount Stores · market cap $28.1b. 20% off the 52-week high of $158.23. 29 sell-side analysts rate this a Buy with a mean 1-yr target of $141.45 (implying +11% upside).
Moat
ROE 20% is above 15% — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 118% of net income — earnings translate cleanly into cash.
Risk
Net margin 3.9% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
COSTCostco Wholesale Corporation
Discount Stores · $946.92 · beta 0.87
Why now
Discount Stores · market cap $419.6b. 14% off the 52-week high of $1096.50. 35 sell-side analysts rate this a Buy with a mean 1-yr target of $1,058 (implying +12% upside).
Moat
ROE 28% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 95% of net income — earnings translate cleanly into cash. $419.6b market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk
Trailing P/E 46x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. Net margin 3.0% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Where DG and COST diverge
On the headline score the gap is 12.3 points in favor of DG. They get there differently, though — each leads on a different pillar, so the better pick depends on which you weight.
ValueDG 58.8 · COST 19.9DG +38.9
QualityDG 61.6 · COST 79.2COST +17.6
GrowthDG 59.6 · COST 68.7COST +9.1
Pillars run 0–100. Value is judged against each company's own sector, so a Value score is a statement about a company relative to its own industry rather than to the other name here. A wide Value gap usually means the market already prices the difference in quality or growth — which is the trade-off this comparison comes down to.
Common questions
Is DG or COST the better stock?
DG scores higher: DG 60.0, COST 47.7 out of 100 on the Bull Rankings quality-growth score, which blends business quality, growth and valuation into one number. A higher score means a stronger business at a more reasonable price — it is not a price target or a recommendation.
Where do DG and COST differ most?
The widest gap is value, where DG leads by 39 points on the 0–100 pillar scale. Neither name sweeps: they trade the lead across the three pillars, so the comparison is a trade-off rather than one being better on every measure.
How are DG and COST scored?
Each carries the same 0–100 quality-growth score used everywhere on the site, built from three pillars — quality (profitability and returns on capital), growth (revenue and earnings), and value (what you pay for them) — combined as a geometric mean, so a weak pillar cannot be papered over by a strong one.
How current is this comparison?
The whole universe is re-scored every trading day after the US market close, so the scores and fundamentals here reflect the latest published edition.