Interestingly, they both have virtually identical share prices ($84), shares outstanding (220m) and market caps ($18b), making comparison easier.

DG has higher revenues (about $40b), compared to DLTR (about $30b), and also higher operating income, with DG at about $2.4-3.0b in the last few years, and DLTR at about $2b, and much lower last year because of a big one-time expense. DG had just $0.5b in operating income this catastrophic Q2, and we'll see what DLTR announces next week, but $0.5b is still better than DLTR's recent quarters.


Dollar General has a few more stores (20k) than Dollar Tree (17k, including the Family Dollar stores).

DG is more rural, DLTR is more suburban.

DG has been more active with share repurchases (which is why its market cap has come down to DLTR's), and has not had the big problematic merger with Family Dollar to deal with.

DG is expanding (about 800 new stores this year), DLTR is contracting (closing Family Dollar stores).

DG's share price was down 30% yesterday, and slightly down again today towards the end of the day, giving me a chance to change my mind about how good their chances are of turning things around. I still can't decide, but it seems DG is the better deal. Can anyone think of a reason to prefer DLTR?