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Dollar General Corporation (DG) vs Pfizer, Inc. (PFE): Which Is the Better Buy in 2026?

As of 2026-08-03, DG is overvalued at $127, with a DCF intrinsic value of $91 and a margin of safety of -40%. PFE is undervalued at $25, with an intrinsic value of $127985960274 and a margin of safety of 100%. Of the two, PFE has the wider margin of safety.

DG
Dollar General Corporation
$127.05
VS
PFE
Pfizer, Inc.
$25.01

Rewards

DG
  • ★Free cash flow has grown at a 78.1% CAGR over the past 4 years, demonstrating strong earnings power growth.
PFE
  • ★Gross margin of 74.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Trailing P/E of 19.1x is 37% below the historical average of 30.4x — potentially undervalued relative to its own history.

Risks

DG
  • ⚠FCF yield of 6.7% suggests reasonable valuation assuming continued moderate growth.
  • ⚠High leverage (1.63x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Net debt/EBITDA of 4.3x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
PFE
  • ⚠ROIC has declined by 15.9 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠PEG ratio of 2.94 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Altman Z-Score of 1.38 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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DG
PFE
Valuation
$1.88B
Free Cash Flow
$12.38B
6.72%
FCF Yield
N/A
18.00
Trailing P/E
19.09
15.84
Forward P/E
8.85
Quality & Moat
8.17%
ROIC
10.19%
18.91%
ROE
8.31%
30.83%
Gross Margin
74.80%
1.82
PEG Ratio
2.94
Balance Sheet Safety
1.63
Net Debt / Equity
0.57
N/A
Interest Coverage
N/A
4.26
Net Debt / EBITDA
2.03
1.86%
Dividend Yield
6.88%
DG: 3Ties: 1PFE: 7
DGPFE

Historical Fundamentals

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DG

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

PFE

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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DG
$-0.66
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$2.74B
Δ Market Cap
$-1.81B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
PFE
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-10.61B
Δ Market Cap
$-26.34
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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DG
40.2% Overvalued
Price is 40.2% above estimated fair value
Current Price: $127.05
Fair Value: $90.59
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
PFE
100.0% Margin of Safety
Price is 100.0% below estimated fair value
Current Price: $25.01
Fair Value: $127985960274.09
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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DG

What growth rate is the market pricing in at $127?

+12.3%
Market-Implied Owner Earnings Growth
Standard FCF implies +9.3%

The market implies +12.3% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +9.3%, reflecting heavy growth investment.

PFE

What growth rate is the market pricing in at $25?

-14.2%
Market-Implied Owner Earnings Growth
Standard FCF implies -15.0%

The market implies -14.2% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding -15.0%, reflecting heavy growth investment.

Economic Moat Score

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DG
47/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.
PFE
35/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

Forensic Accounting

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DG
-2.75
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
PFE
-2.53
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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DG
Insiders 0.3%Institutions 101.5%
No. of Institutional Holders1,547
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
PFE
Insiders 0.1%Institutions 69.5%Retail & Other 30.4%
No. of Institutional Holders3,661
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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DG
0
Buys (3M)
0
Buys (12M)
BRYANT WARREN F
Director
$80,825
@ $80.83 · 2024-09-10
BRYANT WARREN F
Director
$40,200
@ $80.40 · 2024-09-05
Open market purchases · includes direct & indirect ownership · excludes option exercises
PFE
0
Buys (3M)
0
Buys (12M)
BLAYLOCK RONALD E
Director
$499,072
@ $25.65 · 2025-02-13
GOTTLIEB SCOTT
Director
$28,240
@ $28.24 · 2024-10-30
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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DG
0
Sells (3M)
7
Sells (12M)
Total value (12M): $8.27M
WHEELER BRYAN D
Officer
$1.32M
@ $135.32 · 2025-12-19
TAYLOR RHONDA M
General Counsel
$1.01M
@ $134.89 · 2025-12-16
WEST RODERICK J
Officer
$304,316
@ $133.35 · 2025-12-16
ELLIOTT ANITA C
Officer
$333,424
@ $132.52 · 2025-12-12
WENKOFF CARMAN R
Chief Technology Officer
$2.53M
@ $132.01 · 2025-12-11
HERRMANN TRACEY N
Officer
$2.21M
@ $126.82 · 2025-12-11
REARDON KATHLEEN A
Officer
$558,028
@ $126.97 · 2025-12-08
TAYLOR EMILY C
Officer
$222,501
@ $113.00 · 2025-06-17
REARDON KATHLEEN A
Officer
$718,229
@ $111.56 · 2025-06-12
TAYLOR EMILY C
Officer
$76,627
@ $94.72 · 2025-04-04
TAYLOR EMILY C
Officer
$367,061
@ $77.44 · 2024-12-13
REARDON KATHLEEN A
Officer
$296,241
@ $82.68 · 2024-12-10
DECKARD STEVEN R
Officer
$174,195
@ $86.66 · 2024-09-18
WEST RODERICK J
Officer
$208,960
@ $83.25 · 2024-09-12
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
PFE
1
Sells (3M)
1
Sells (12M)
Total value (12M): $51,400
DAMICO JENNIFER B.
Officer
$51,400
@ $25.70 · 2026-06-09
DAMICO JENNIFER B.
Officer
$64,825
@ $25.93 · 2025-03-04
DAMICO JENNIFER B.
Officer
$147,714
@ $28.66 · 2024-08-13
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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DG
FearGreed
😐Neutral(50/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
PFE
FearGreed
😐Neutral(52/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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DG
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (50)
PFE
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (52)
View DG Full AnalysisView PFE Full Analysis

Frequently Asked Questions: DG vs PFE

Is Dollar General Corporation or Pfizer, Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, PFE trades at a 100.0% margin of safety (intrinsic value $127985960274 vs. price $25), compared to DG's -40.2% margin of safety (intrinsic $91 vs. $127).

Which stock has a wider economic moat, Dollar General Corporation or Pfizer, Inc.?▼

DG scores 47/100 (Narrow moat), while PFE scores 35/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Pfizer, Inc. in financial distress?▼

PFE's Altman Z-Score of 1.4 places it in the Distress zone, signaling elevated bankruptcy risk. DG scores 2.6 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Dollar General Corporation or Pfizer, Inc.?▼

PFE earns 10.2% ROIC versus DG's 8.2%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Dollar General Corporation's or Pfizer, Inc.'s?▼

DG's dividend earns a safety score of 85/100 (Very Safe), compared to PFE's 24/100 (Unsafe). DG has raised its dividend for 0 consecutive years.