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DG vs EL

DG
Dollar General Corporation
NEUTRAL
Price
$118.56
Market Cap
$26.11B
Sector
Consumer Defensive
AI Confidence
85%
EL
The Estée Lauder Companies Inc.
BEARISH
Price
$77.82
Market Cap
$28.15B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
DG
17.31
EL
--
Forward P/E
DG
14.86
EL
25.84
P/B Ratio
DG
3.07
EL
6.98
P/S Ratio
DG
0.61
EL
1.92
EV/EBITDA
DG
12.31
EL
15.63

Profitability

Gross Margin
DG
30.66%
EL
74.32%
Operating Margin
DG
6.08%
EL
14.26%
Profit Margin
DG
3.54%
EL
-1.21%
ROE
DG
18.99%
EL
-4.34%
ROA
DG
4.55%
EL
4.42%

Growth

Revenue Growth
DG
5.9%
EL
5.6%
Earnings Growth
DG
121.9%
EL
--

Financial Health

Debt/Equity
DG
1.85
EL
2.33
Current Ratio
DG
1.14
EL
1.36
Quick Ratio
DG
0.17
EL
0.9

Dividends

Dividend Yield
DG
1.99%
EL
1.8%
Payout Ratio
DG
34.45%
EL
471.43%

AI Verdict

DG NEUTRAL

DG shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Mixed signals with both opportunities and risks present.

Strengths
Strong ROE of 19.0%
Risks
Premium vs Graham Number ($77.18)
Low profit margin of 3.5%
EL BEARISH

The Estée Lauder Companies (EL) exhibits severe fundamental weakness, highlighted by a critical Piotroski F-Score of 2/9, indicating deteriorating financial health. While the company maintains strong gross margins (74.32%) and has a history of beating earnings estimates, these are overshadowed by an unsustainable dividend payout ratio of 471.43% and a high Debt/Equity ratio of 2.33. Massive insider selling exceeding $1 billion and a catastrophic 5-year price decline of 73.5% suggest a lack of confidence from internal stakeholders and long-term investors. Despite analyst 'buy' recommendations, the combination of negative ROE and weak deterministic scores points to significant structural risk.

Strengths
Very high gross margins (74.32%) indicating strong brand pricing power
Consistent track record of beating quarterly earnings estimates (3/4 recently)
Positive operating margin (14.26%) despite negative net profit
Risks
Unsustainable dividend payout ratio (471.43%) suggesting a high risk of dividend cut
Weak financial health as evidenced by a Piotroski F-Score of 2/9
High leverage with a Debt/Equity ratio of 2.33

Compare Another Pair

DG vs EL: Head-to-Head Comparison

This page compares Dollar General Corporation (DG) and The Estée Lauder Companies Inc. (EL) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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