Dollar Tree vs Target
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KIRA’s take AI analyst
I put Dollar Tree and Target side by side, using each one’s latest annual report. Here is what stands out:
- Target is the larger business, with $104.8B of revenue in fiscal 2025 against $19.4B for Dollar Tree, about 5.4 times as much.
- Dollar Tree grew revenue faster (10.4%, against −1.7%).
- Dollar Tree kept more of each dollar of sales as operating profit (8.5% operating margin, against 4.9%).
- Dollar Tree turned more of its sales into free cash flow (5.4% FCF margin, against 2.7%).
- Dollar Tree earned a higher return on the capital invested in it (21.4%, against 15.0%).
- Investors pay more for each dollar of Target’s earnings: a P/E of 15.4x against 15.3x for Dollar Tree.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Dollar Tree
DLTR
10/11
Revenue growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
Target
TGT
1/11
5-year growth
Side by side
Best in the row
| Latest fiscal year | DLTR FY25 | TGT FY25 |
|---|---|---|
| Size | ||
| Market cap | $23.8B | $67.8B |
| Revenue | $19.4B | $104.8B |
| Free cash flow | $1.1B | $2.8B |
| Net income | $1.3B | $3.7B |
| Growth | ||
| Revenue growth | 10.4% | −1.7% |
| 5-year growth | −5.3% | 2.3% |
| Share count change | −4.5% | −1.3% |
| Profitability | ||
| Gross margin | 36.3% | 27.9% |
| Operating margin | 8.5% | 4.9% |
| Net margin | 6.6% | 3.5% |
| FCF margin | 5.4% | 2.7% |
| Return on capital | 21.4% | 15.0% |
| Return on equity | 33.2% | 24.0% |
| Balance sheet | ||
| Net debt | $1.7B | $11.0B |
| Net debt / EBITDA | 0.7x | 1.3x |
| Dividends and buybacks | $1.5B | $2.5B |
| Valuation & quality | ||
| P/E | 15.3x | 15.4x |
| Piotroski F-score | 9 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.