Dollar General and Dollar Tree survived the retail apocalypse, but their stocks dropped in recent years. Dollar General focuses on rural areas and expanded into Mexico, while Dollar Tree targets urban markets and sold off Family Dollar. Both saw growth in same-store sales but face challenges like inflation and theft.

Dollar General’s same-store sales growth slowed due to operational challenges but is expected to rise in fiscal 2025. Dollar Tree’s growth also decelerated but is projected to accelerate in fiscal 2025, driven by store conversions and divestment of Family Dollar. Both companies expect EPS growth in the coming year.

Dollar General trades at 20 times forward earnings with a dividend yield, while Dollar Tree trades at 21 times earnings without a dividend. Despite being cheaper, Dollar Tree’s divestment of Family Dollar, stronger same-store sales, and plans for attracting higher-income consumers make it a more compelling investment, according to analysts.

Read more at Yahoo Finance: Which Discount Stock Wins the Value Game?