Seek Returns logo

ACI vs. DG: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ACI and DG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

DG’s market capitalization of 25.11 billion USD is significantly greater than ACI’s 12.63 billion USD, highlighting its more substantial market valuation.

With betas of 0.31 for ACI and 0.27 for DG, both stocks show similar sensitivity to overall market movements.

SymbolACIDG
Company NameAlbertsons Companies, Inc.Dollar General Corporation
CountryUSUS
SectorConsumer DefensiveConsumer Defensive
IndustryGrocery StoresDiscount Stores
CEOSusan D. MorrisTodd J. Vasos
Price21.93 USD114.11 USD
Market Cap12.63 billion USD25.11 billion USD
Beta0.310.27
ExchangeNYSENYSE
IPO DateJune 26, 2020November 13, 2009
ADRNoNo

Historical Performance

This chart compares the performance of ACI and DG by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ACI vs. DG: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ACI

30.23%

Grocery Stores Industry

Max
41.83%
Q3
33.21%
Median
17.57%
Q1
4.85%
Min
-1.90%

ACI’s Return on Equity of 30.23% is on par with the norm for the Grocery Stores industry, indicating its profitability relative to shareholder equity is typical for the sector.

DG

15.53%

Discount Stores Industry

Max
31.68%
Q3
28.60%
Median
15.53%
Q1
12.21%
Min
12.12%

DG’s Return on Equity of 15.53% is on par with the norm for the Discount Stores industry, indicating its profitability relative to shareholder equity is typical for the sector.

ACI vs. DG: A comparison of their ROE against their respective Grocery Stores and Discount Stores industry benchmarks.

Return on Invested Capital

ACI

6.91%

Grocery Stores Industry

Max
9.72%
Q3
6.86%
Median
5.47%
Q1
3.42%
Min
1.05%

In the upper quartile for the Grocery Stores industry, ACI’s Return on Invested Capital of 6.91% signifies a highly effective use of its capital to generate profits when compared to its peers.

DG

5.22%

Discount Stores Industry

Max
20.02%
Q3
12.27%
Median
11.13%
Q1
6.51%
Min
5.03%

DG’s Return on Invested Capital of 5.22% is in the lower quartile for the Discount Stores industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.

ACI vs. DG: A comparison of their ROIC against their respective Grocery Stores and Discount Stores industry benchmarks.

Net Profit Margin

ACI

1.19%

Grocery Stores Industry

Max
5.53%
Q3
3.00%
Median
1.73%
Q1
1.16%
Min
-1.36%

ACI’s Net Profit Margin of 1.19% is aligned with the median group of its peers in the Grocery Stores industry. This indicates its ability to convert revenue into profit is typical for the sector.

DG

2.81%

Discount Stores Industry

Max
2.92%
Q3
2.92%
Median
2.81%
Q1
2.75%
Min
2.75%

DG’s Net Profit Margin of 2.81% is aligned with the median group of its peers in the Discount Stores industry. This indicates its ability to convert revenue into profit is typical for the sector.

ACI vs. DG: A comparison of their Net Profit Margin against their respective Grocery Stores and Discount Stores industry benchmarks.

Operating Profit Margin

ACI

2.05%

Grocery Stores Industry

Max
4.30%
Q3
3.63%
Median
2.32%
Q1
1.32%
Min
0.87%

ACI’s Operating Profit Margin of 2.05% is around the midpoint for the Grocery Stores industry, indicating that its efficiency in managing core business operations is typical for the sector.

DG

4.24%

Discount Stores Industry

Max
5.42%
Q3
5.42%
Median
4.33%
Q1
3.93%
Min
2.10%

DG’s Operating Profit Margin of 4.24% is around the midpoint for the Discount Stores industry, indicating that its efficiency in managing core business operations is typical for the sector.

ACI vs. DG: A comparison of their Operating Margin against their respective Grocery Stores and Discount Stores industry benchmarks.

Profitability at a Glance

SymbolACIDG
Return on Equity (TTM)30.23%15.53%
Return on Assets (TTM)3.58%3.72%
Return on Invested Capital (TTM)6.91%5.22%
Net Profit Margin (TTM)1.19%2.81%
Operating Profit Margin (TTM)2.05%4.24%
Gross Profit Margin (TTM)27.06%29.80%

Financial Strength

Current Ratio

ACI

0.90

Grocery Stores Industry

Max
1.25
Q3
1.20
Median
1.00
Q1
0.95
Min
0.90

ACI’s Current Ratio of 0.90 falls into the lower quartile for the Grocery Stores industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

DG

1.23

Discount Stores Industry

Max
1.25
Q3
1.23
Median
1.02
Q1
0.78
Min
0.74

DG’s Current Ratio of 1.23 aligns with the median group of the Discount Stores industry, indicating that its short-term liquidity is in line with its sector peers.

ACI vs. DG: A comparison of their Current Ratio against their respective Grocery Stores and Discount Stores industry benchmarks.

Debt-to-Equity Ratio

ACI

4.19

Grocery Stores Industry

Max
4.19
Q3
2.56
Median
1.41
Q1
0.87
Min
0.12

ACI’s leverage is in the upper quartile of the Grocery Stores industry, with a Debt-to-Equity Ratio of 4.19. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

DG

2.21

Discount Stores Industry

Max
2.34
Q3
1.40
Median
0.80
Q1
0.31
Min
0.20

DG’s leverage is in the upper quartile of the Discount Stores industry, with a Debt-to-Equity Ratio of 2.21. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ACI vs. DG: A comparison of their D/E Ratio against their respective Grocery Stores and Discount Stores industry benchmarks.

Interest Coverage Ratio

ACI

3.59

Grocery Stores Industry

Max
24.50
Q3
16.36
Median
5.08
Q1
3.73
Min
-0.63

In the lower quartile for the Grocery Stores industry, ACI’s Interest Coverage Ratio of 3.59 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

DG

6.54

Discount Stores Industry

Max
18.46
Q3
17.45
Median
13.09
Q1
10.49
Min
1.08

In the lower quartile for the Discount Stores industry, DG’s Interest Coverage Ratio of 6.54 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

ACI vs. DG: A comparison of their Interest Coverage against their respective Grocery Stores and Discount Stores industry benchmarks.

Financial Strength at a Glance

SymbolACIDG
Current Ratio (TTM)0.901.23
Quick Ratio (TTM)0.220.20
Debt-to-Equity Ratio (TTM)4.192.21
Debt-to-Asset Ratio (TTM)0.530.55
Net Debt-to-EBITDA Ratio (TTM)3.975.91
Interest Coverage Ratio (TTM)3.596.54

Growth

The following charts compare key year-over-year (YoY) growth metrics for ACI and DG. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ACI vs. DG: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ACI vs. DG: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ACI vs. DG: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ACI

2.46%

Grocery Stores Industry

Max
5.28%
Q3
2.38%
Median
1.48%
Q1
0.26%
Min
0.00%

With a Dividend Yield of 2.46%, ACI offers a more attractive income stream than most of its peers in the Grocery Stores industry, signaling a strong commitment to shareholder returns.

DG

2.07%

Discount Stores Industry

Max
4.51%
Q3
0.91%
Median
0.49%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.07%, DG offers a more attractive income stream than most of its peers in the Discount Stores industry, signaling a strong commitment to shareholder returns.

ACI vs. DG: A comparison of their Dividend Yield against their respective Grocery Stores and Discount Stores industry benchmarks.

Dividend Payout Ratio

ACI

30.78%

Grocery Stores Industry

Max
4,966.68%
Q3
30.78%
Median
24.38%
Q1
0.00%
Min
0.00%

ACI’s Dividend Payout Ratio of 30.78% is within the typical range for the Grocery Stores industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

DG

44.99%

Discount Stores Industry

Max
44.99%
Q3
36.65%
Median
19.69%
Q1
0.00%
Min
0.00%

DG’s Dividend Payout Ratio of 44.99% is in the upper quartile for the Discount Stores industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ACI vs. DG: A comparison of their Payout Ratio against their respective Grocery Stores and Discount Stores industry benchmarks.

Dividend at a Glance

SymbolACIDG
Dividend Yield (TTM)2.46%2.07%
Dividend Payout Ratio (TTM)30.78%44.99%

Valuation

Price-to-Earnings Ratio

ACI

13.26

Grocery Stores Industry

Max
35.78
Q3
21.80
Median
18.09
Q1
11.47
Min
8.82

ACI’s P/E Ratio of 13.26 is within the middle range for the Grocery Stores industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

DG

21.76

Discount Stores Industry

Max
55.76
Q3
45.00
Median
33.38
Q1
22.25
Min
10.79

In the lower quartile for the Discount Stores industry, DG’s P/E Ratio of 21.76 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ACI vs. DG: A comparison of their P/E Ratio against their respective Grocery Stores and Discount Stores industry benchmarks.

Forward P/E to Growth Ratio

ACI

17.35

Grocery Stores Industry

Max
4.43
Q3
3.62
Median
2.13
Q1
0.83
Min
0.05

ACI’s Forward PEG Ratio of 17.35 is exceptionally high for the Grocery Stores industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

DG

2.50

Discount Stores Industry

Max
5.06
Q3
3.70
Median
2.97
Q1
2.24
Min
1.25

DG’s Forward PEG Ratio of 2.50 is within the middle range of its peers in the Discount Stores industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ACI vs. DG: A comparison of their Forward PEG Ratio against their respective Grocery Stores and Discount Stores industry benchmarks.

Price-to-Sales Ratio

ACI

0.16

Grocery Stores Industry

Max
0.69
Q3
0.45
Median
0.28
Q1
0.22
Min
0.14

In the lower quartile for the Grocery Stores industry, ACI’s P/S Ratio of 0.16 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

DG

0.61

Discount Stores Industry

Max
2.07
Q3
1.63
Median
0.96
Q1
0.64
Min
0.43

In the lower quartile for the Discount Stores industry, DG’s P/S Ratio of 0.61 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

ACI vs. DG: A comparison of their P/S Ratio against their respective Grocery Stores and Discount Stores industry benchmarks.

Price-to-Book Ratio

ACI

3.75

Grocery Stores Industry

Max
5.54
Q3
4.47
Median
2.48
Q1
1.04
Min
0.41

ACI’s P/B Ratio of 3.75 is within the conventional range for the Grocery Stores industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

DG

3.26

Discount Stores Industry

Max
16.12
Q3
9.30
Median
5.40
Q1
3.27
Min
2.73

DG’s P/B Ratio of 3.26 is in the lower quartile for the Discount Stores industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

ACI vs. DG: A comparison of their P/B Ratio against their respective Grocery Stores and Discount Stores industry benchmarks.

Valuation at a Glance

SymbolACIDG
Price-to-Earnings Ratio (P/E, TTM)13.2621.76
Forward PEG Ratio (TTM)17.352.50
Price-to-Sales Ratio (P/S, TTM)0.160.61
Price-to-Book Ratio (P/B, TTM)3.753.26
Price-to-Free Cash Flow Ratio (P/FCF, TTM)16.8513.08
EV-to-EBITDA (TTM)7.5815.09
EV-to-Sales (TTM)0.331.00