Better Buy: Dollar General vs. Dollar Tree
At first glance these two retailers look almost identical -- even interchangeable -- from an investor's perspective. Dollar General (NYSE: DG) runs small, localized, value-oriented stores. So does Dollar Tree (NASDAQ: DLTR). However, the two outfits are more different than they may seem on the surface. Indeed, an investor is likely to earn better returns owning a stake in one of these companies than the other.
Don't misread that message. Either of these discount store chains would make for a decent investment. That's particularly true in the current economic environment marked by inflation, which has consumers pinching a few more pennies than they normally might. If you happen to own the one that's not the "better buy," it's not necessarily a call to sell your existing position and use the proceeds to purchase the other stock.
If you're mulling a new position in one or the other, though, Dollar General's arguably got more upside potential. Three reasons stand out among all of its competitive edges.
Source Fool.com
