Better Buy: Dollar General vs. Walmart

At first glance, Dollar General (NYSE: DG) and (NYSE: WMT) look like they're cut from the same basic cloth. Walmart operates fewer but bigger stores, while Dollar General manages more but smaller stores. Walmart's selection is more varied due to its sheer size. If you're looking for the most-needed and most-consumed basics, though, both retailers have them.

From an investor's point of view, however, the two companies are quite different. One is a far better bet than the other... particularly right now. The better buy at this time is Walmart. Here's why.

While the two retailers are in the same general merchandise business, their business models are notably different. Walmart operates 4,684 stores in the United States, plus another 599 Sam's Club warehouses (and another 5,262 locales outside the U.S.). Its average supercenter covers about 190,000 square feet, and for obvious reasons they're located in relatively populated areas. The company boasts that 90% of U.S. residents live within 10 miles of some sort of Walmart store.

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Source Fool.com