Are The Dollar Stores Better Buys than Target Corporation (TGT) and Wal-Mart Stores, Inc. (WMT)?

Family Dollar comes off as weaker than the other two dollar stores, with earnings multiples in about the same range but a poorer performance going by recent quarterly reports. Dollar General and Dollar Tree, meanwhile, seem to compare favorably with Wal-Mart Stores, Inc. (NYSE:WMT) and Target Corporation (NYSE:TGT): the gap in valuation, in terms of P/E multiples, looks quite narrow when we consider the difference in recent earnings growth.

Disclosure: I own no shares of any stocks mentioned in this article.