Dollar Tree vs Big Lots Which Offers More Value?

Dollar Tree and Big Lots are both discount retail chains that cater to budget-conscious shoppers. While Dollar Tree focuses on offering a wide variety of products for $1 or less, Big Lots offers a larger selection of merchandise at discounted prices. Both companies have shown steady growth in recent years, with Dollar Tree maintaining a strong market presence and Big Lots expanding its offerings. Investors may consider factors such as market trends, financial performance, and growth potential when comparing Dollar Tree and Big Lots stocks.

Dollar Tree or Big Lots?

When comparing Dollar Tree and Big Lots, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Dollar Tree and Big Lots.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Dollar Tree has a dividend yield of -%, while Big Lots has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Dollar Tree reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Big Lots reports a 5-year dividend growth of -24.21% year and a payout ratio of -0.06%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Dollar Tree P/E ratio at -14.75 and Big Lots's P/E ratio at -0.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Dollar Tree P/B ratio is 2.02 while Big Lots's P/B ratio is -0.10.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Dollar Tree has seen a 5-year revenue growth of 0.45%, while Big Lots's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dollar Tree's ROE at -14.09% and Big Lots's ROE at -358.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $71.50 for Dollar Tree and $0.42 for Big Lots. Over the past year, Dollar Tree's prices ranged from $60.49 to $151.22, with a yearly change of 149.99%. Big Lots's prices fluctuated between $0.40 and $8.41, with a yearly change of 2002.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.