- Dollar Tree Inc. (DLTR)
- Dollar General Corporation (DG)
- Waste Management Inc. (WM)
- Waste Connections Inc. (WCN)
Both WM and DG are defensive companies that have demonstrated resiliency in tough economic conditions. DG is a $47.9B company and WM has a market cap of $67.7B. Both stocks are expected to see decent sales and earnings growth this year, and on a 10-year CAGR basis, both DG and WM have grown their share prices by 15%. DG and WM have strong profit margins and decent valuations, but they are fairly leveraged as well.
For a slightly less levered balance sheet, we might prefer WCN over WM, although we would be quite comfortable holding WM. For a less levered balance sheet to DG, we might prefer DLTR here, although DLTR has shown weaker fundamentals and share price appreciation than DG.