Jim Cramer recommends buying Dollar General for consistency and Dollar Tree for high-risk, high-reward.

• On Thursday, CNBC's Jim Cramer advised investors to buy Dollar General if they value consistency, and to purchase Dollar Tree if they are willing to take risks.
• The "Mad Money" host stated that Dollar General is a consistent operator that doesn't need to do anything too crazy to beat the estimates, even though they're lowering prices. He believes this is a good long-term strategy to win over customers.

On Thursday, CNBC's Jim Cramer advised investors to buy if they value consistency, while risk-takers should purchase.

The "Mad Money" host stated that Dollar General is a consistent operator that doesn't need to do anything too crazy to beat the estimates, even though they're lowering prices. He believes this is a good long-term strategy to win over customers.

"Dollar Tree is a high-risk, high-reward turnaround play with significant potential upside. However, if they fail to execute, you can lose your gains," he stated.

Dollar General's success can be attributed to the contrasting pricing strategies of the two companies, with Dollar Tree raising prices to $1.25 to offset pandemic-driven costs.

Dollar General has increased its focus on $1 products by setting up more in-store displays, as stated in an analyst call on March 17.

Cramer stated that Dollar General's move to lower prices is aimed at assisting their customers, who often face financial difficulties, and also attracts discontented Dollar Tree customers who dislike paying an additional quarter.

On Thursday, Dollar General's stock dropped 2.13% to $222.63. Despite reporting quarterly earnings that matched forecasts, the company missed revenue expectations earlier this month. However, Dollar General forecast higher-than-expected full-year sales and increased its dividend by 31%.

Cramer recently highlighted Dollar General as a dividend stock to buy.

On Thursday, Dollar Tree stock dropped 0.11% to $160.15, despite hitting a new 52-week high of $162.13 earlier in the day. Despite this, the company fell short of Wall Street expectations on revenue in its latest quarterly earnings.

Dollar Tree's stock has increased in value recently, and the host attributed this to the company's recent executive board changes, including the appointment of Richard Dreiling as executive chair.

Dollar Tree's position was upgraded by Piper Sandler and Loop Capital Market following the move, as Cramer noted, 'Activist pressure can work wonders, especially if it’s a smart activist.'

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