Which Is a Better Investment, Dollar General Corporation or The Kroger Co. Stock?

By Omar Beirat
May 16, 2026
Large versus logo comparing two stocks in the same industry
Featured Tickers:
DG KR

Sifting through countless of stocks in the Consumer Staples Distribution & Retail industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Dollar General Corporation or The Kroger Co. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Dollar General Corporation and The Kroger Co. compare based on key financial metrics to determine which better meets your investment needs.

About Dollar General Corporation and The Kroger Co.

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. It offers consumable products, including paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food, such as cereals, pasta, canned soups, canned meats, fruits and vegetables, condiments, spices, sugar, and flour; and perishables, including milk, eggs, bread, refrigerated and frozen food, beer, wine, and produce; candy, cookies, crackers, salty snacks, and carbonated beverages; over-the-counter medicines and personal care products including soap, body wash, shampoo, cosmetics, dental hygiene and foot care products; pet supplies and pet food; and tobacco products. The company also provides seasonal products comprising holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive, and home office supplies; home products include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, and bed and bath soft goods; and apparel products for infants, toddlers, girls, boys, women and men, as well as socks, underwear, disposable diapers, shoes and accessories. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.

The Kroger Co. operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and its multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys. The company’s marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and its price impact warehouse stores provide grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. It also manufactures and processes food products for sale in its supermarkets and online; and sells fuel through its fuel centers. The company sells its products through its stores, fuel centers, and online platforms. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.

Latest Consumer Staples Distribution & Retail and Dollar General Corporation, The Kroger Co. Stock News

As of May 15, 2026, Dollar General Corporation had a $22.5 billion market capitalization, compared to the Consumer Staples Distribution & Retail median of $4.5 million. Dollar General Corporation’s stock is down 22.9% in 2026, down 9.6% in the previous five trading days and up 16.74% in the past year.

Currently, Dollar General Corporation’s price-earnings ratio is 14.9. Dollar General Corporation’s trailing 12-month revenue is $42.7 billion with a 3.5% net profit margin. Year-over-year quarterly sales growth most recently was 5.9%. Analysts expect adjusted earnings to reach $7.281 per share for the current fiscal year. Dollar General Corporation currently has a 2.3% dividend yield.

As of May 15, 2026, The Kroger Co. had a $40.4 billion market cap, putting it in the 92nd percentile of all stocks. The Kroger Co.’s stock is up 5.7% in 2026, up 0.6% in the previous five trading days and down 0.48% in the past year.

Currently, The Kroger Co.’s price-earnings ratio is 42.9. The Kroger Co.’s trailing 12-month revenue is $147.6 billion with a 0.7% net profit margin. Year-over-year quarterly sales growth most recently was 1.2%. Analysts expect adjusted earnings to reach $5.241 per share for the current fiscal year. The Kroger Co. currently has a 2.1% dividend yield.

How We Compare Dollar General Corporation and The Kroger Co. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Dollar General Corporation and The Kroger Co.’s stock grades to see how they measure up against one another.

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Dollar General Corporation and The Kroger Co. Growth Grades

Company Ticker Growth
Dollar General Corporation DG B
The Kroger Co. KR B

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Dollar General Corporation has a Growth Score of 78, which is Strong. The Kroger Co. has a Growth Score of 73, which is Strong.

The Growth Grade Winner: It’s a Tie!

Looking at the Growth Grade breakdown above, both Dollar General Corporation and The Kroger Co. have a grade of B. For investors who focus solely on a company’s upward growth, further research should be conducted into both companies’ other financial metrics before deciding whether to invest.

Dollar General Corporation and The Kroger Co.’s Quality Grades

Company Ticker Quality
Dollar General Corporation DG A
The Kroger Co. KR A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Dollar General Corporation has a Quality Score of 87, which is Very Strong. The Kroger Co. has a Quality Score of 95, which is Very Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both Dollar General Corporation and The Kroger Co. have a grade of A. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

Dollar General Corporation and The Kroger Co.’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Dollar General Corporation DG B
The Kroger Co. KR C

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Dollar General Corporation has a Earnings Estimate Score of 67, which is Positive. The Kroger Co. has a Earnings Estimate Score of 50, which is Neutral.

The Earnings Estimate Revisions Grade Winner: Dollar General Corporation

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Dollar General Corporation has a better Earnings Estimate Revisions Grade than The Kroger Co.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Dollar General Corporation could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

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Other Dollar General Corporation and The Kroger Co. Grades

In addition to Estimate Revisions, Growth and Quality, A+ Investor also provides grades for Value and Momentum.

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Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Dollar General Corporation and The Kroger Co. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Dollar General Corporation or The Kroger Co. Stock?

Overall, Dollar General Corporation stock has a Growth Score of 78, Estimate Revisions Score of 67 and Quality Score of 87.

The Kroger Co. stock has a Growth Score of 73, Estimate Revisions Score of 50 and Quality Score of 95.

Comparing Dollar General Corporation and The Kroger Co.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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