Better Buy: Dollar General vs. Ulta Beauty
Wall Street has decided to put both Dollar General (NYSE: DG) and Ulta Beauty (NASDAQ: ULTA) in the discount bin. The retail stocks are underperforming the S&P 500 this year even though they are growing and remain highly profitable.
Those positive factors could set the stage for excellent returns if you're willing to hold the stock through some volatility. With that in mind, let's look at which of these businesses would make the better fit for your portfolio today.
The growth picture has become cloudier for both companies, yet sales are still marching higher. For Dollar General, revenue rose 7% last quarter, mainly thanks to its expanding store base. Revenue at existing locations for the discount chain was up just 2%.
Source Fool.com
