.September 5, 2024 04:07:03 AM

In the competitive discount retail sector, Dollar Tree, Inc. (NASDAQ:DLTR) faces challenges with a stock price of $63.56 and a target price of $153.27, reflecting high growth expectations. The company’s ROIC of 0.81% compared to a WACC of 5.65% indicates less efficient capital use. On the other hand, O’Reilly Automotive, Inc. (NASDAQ:ORLY) stands out with a higher ROIC/WACC ratio of 5.201, showcasing more attractive capital efficiency. This analysis highlights the importance of evaluating capital efficiency to assess growth potential in the retail sector.