Ive followed the dollar stores for a while now, and have owned DLTR a couple of times - thanks to Jim for his table pounding recommendation a couple of years ago.
DG has been falling recently, and appears to be oversold based on RSI. Additionally, the price ratio of DG to DLTR has now approached levels only seen briefly last winter - after a very short and sharp decline - and before that, not since 2020.
Dollar stores are always appealing in recessionary environments, even if margin compression may challenge earnings. Interestingly, DLTR margins improved last quarter.
Both stocks sport a similar PE of around 19-20.
Dont think either is a screaming buy at these levels, but relatively speaking, DG may offer better chances for short term outperformance, and if you've wanted to own it, this might not be a bad time to start building a position.