Maplebear (NASDAQ:CART) and Dollar General (NYSE:DG) Critical Analysis

Maplebear (NASDAQ:CART) and Dollar General (NYSE:DG) are both large-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Earnings & Valuation

This table compares Maplebear and Dollar General”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Maplebear	$3.74 billion	2.97	$447.00 million	$1.83	26.23
Dollar General	$43.64 billion	0.65	$1.51 billion	$7.69	16.60

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

Institutional and Insider Ownership

63.1% of Maplebear shares are owned by institutional investors. Comparatively, 91.8% of Dollar General shares are owned by institutional investors. 24.0% of Maplebear shares are owned by company insiders. Comparatively, 0.6% of Dollar General shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Maplebear and Dollar General, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Maplebear	0	9	15	0	2.62
Dollar General	1	18	10	0	2.31

Maplebear currently has a consensus price target of $56.14, suggesting a potential upside of 16.96%. Dollar General has a consensus price target of $135.46, suggesting a potential upside of 6.14%. Given Maplebear’s stronger consensus rating and higher probable upside, equities analysts plainly believe Maplebear is more favorable than Dollar General.

Risk & Volatility

Maplebear has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Dollar General has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Maplebear	11.97%	20.19%	14.13%
Dollar General	3.90%	18.93%	5.21%

Summary

Maplebear beats Dollar General on 10 of the 14 factors compared between the two stocks.

About Maplebear

Maplebear Inc., doing business as Instacart, engages in the provision of online grocery shopping services to households in North America. It sells and delivers grocery products, as well as pickup services through a mobile application and website. It also operates virtual convenience stores; and provides software-as-a-service solutions to retailers. The company was incorporated in 2012 and is based in San Francisco, California.

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.