Head-To-Head Contrast: Dollar General (NYSE:DG) vs. BBB Foods (NYSE:TBBB)

Dollar General (NYSE:DG) and BBB Foods (NYSE:TBBB) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Insider & Institutional Ownership

91.8% of Dollar General shares are owned by institutional investors. Comparatively, 8.4% of BBB Foods shares are owned by institutional investors. 0.6% of Dollar General shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Dollar General and BBB Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dollar General	3.90%	18.93%	5.21%
BBB Foods	-3.68%	-72.47%	-10.71%

Volatility & Risk

Dollar General has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, BBB Foods has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Dollar General and BBB Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dollar General	1	16	12	0	2.38
BBB Foods	0	3	7	0	2.70

Dollar General presently has a consensus price target of $137.96, suggesting a potential upside of 10.36%. BBB Foods has a consensus price target of $50.50, suggesting a potential downside of 10.66%. Given Dollar General’s higher possible upside, research analysts plainly believe Dollar General is more favorable than BBB Foods.

Earnings and Valuation

This table compares Dollar General and BBB Foods”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dollar General	$42.72 billion	0.65	$1.51 billion	$7.69	16.26
BBB Foods	$4.08 billion	1.64	-$148.23 million	($1.61)	-35.11

Dollar General has higher revenue and earnings than BBB Foods. BBB Foods is trading at a lower price-to-earnings ratio than Dollar General, indicating that it is currently the more affordable of the two stocks.

Summary

Dollar General beats BBB Foods on 11 of the 13 factors compared between the two stocks.

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.

About BBB Foods

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.