Dollar Tree (NASDAQ: DLTR) and Walmart (NYSE: WMT) both survived the retail apocalypse, which crushed many brick-and-mortar retailers over the past decade. But over the past five years, Walmart's stock rallied nearly 80% as Dollar Tree's stock rose just over 10%.
Let's see why Walmart outperformed Dollar Tree -- and why I believe the superstore remains the better overall investment than the dollar store chain.
Dollar Tree, which sells all its namesake banner's products for a dollar, has carved out a defensible niche against Amazon among low-income shoppers. It acquired its rival Family Dollar, which sells products at slightly higher prices, in 2015.