Almacenes Éxito (NYSE:EXTO) versus Dollar General (NYSE:DG) Critical Comparison

Almacenes Éxito (NYSE:EXTO) and Dollar General (NYSE:DG) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Almacenes Éxito and Dollar General, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Almacenes Éxito	0	0	0	0	N/A
Dollar General	0	11	9	0	2.45

Dollar General has a consensus target price of $148.00, indicating a potential upside of 14.82%. Given Dollar General’s higher probable upside, analysts plainly believe Dollar General is more favorable than Almacenes Éxito.

Profitability

This table compares Almacenes Éxito and Dollar General’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Almacenes Éxito	N/A	N/A	N/A
Dollar General	3.85%	22.80%	4.92%

Dividends

Almacenes Éxito pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Dollar General pays an annual dividend of $2.36 per share and has a dividend yield of 1.8%. Dollar General pays out 34.4% of its earnings in the form of a dividend.

Institutional & Insider Ownership

91.8% of Dollar General shares are held by institutional investors. 0.5% of Dollar General shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Almacenes Éxito and Dollar General’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Almacenes Éxito	$20,941.07 billion	0.00	$25.20 million	N/A	N/A
Dollar General	$38.69 billion	0.73	$1.66 billion	$6.87	18.76

Dollar General has lower revenue, but higher earnings than Almacenes Éxito.

Summary

Dollar General beats Almacenes Éxito on 10 of the 12 factors compared between the two stocks.

About Almacenes Éxito

Almacenes Éxito S.A. operates as a retail commerce company in South America. The company operates a chain of retail stores primarily under the Éxito, Carulla, Surtimax, Super Inter, Surti Mayorista, Libertad, Mini Libertad, Devoto, Disco, and Géant brands. It is also involved in the online commerce activities. In addition, the company engages in the credit facilities, insurance, money transfers and remittances, mobile phone services, trade tourist package trips and tickets, repair and maintain furnishings, paperwork, and energy trade activities; acquisition and building commercial premises for establishing stores, malls, or other locations; investing in property, promoting, and developing various kinds of real estate projects; and leasing of premises. Further, it invests in shares, bonds, trade papers, and other securities; enters into firm factoring agreements; and distributes oil-based liquid fuels through service stations, as well as alcohols, biofuels, and natural gas for vehicles and other fuels used in the automotive, industrial, fluvial, maritime, and air transport sectors. Almacenes Éxito S.A. was founded in 1905 and is headquartered in Envigado, Colombia. As of January 19, 2024, Almacenes Éxito S.A. operates as a subsidiary of Super Selectos El Salvador.

About Dollar General

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine. The company's consumable products also comprise snacks, such as candies, cookies, crackers, salty snacks, and carbonated beverages; health and beauty products, including over-the-counter medicines and personal care products, such as soaps, body washes, shampoos, cosmetics, and dental hygiene and foot care products; pet supplies and pet food; and tobacco products. In addition, it offers seasonal products comprising holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, and automotive and home office supplies; and home products that include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, and bed and bath soft goods. Further, the company provides apparel, which comprise basic items for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.