Winter is coming and many of us are looking to stock up on goodies for the cozy season. Unfortunately, we're also on tight budgets so where does that leave us? Check Out: 4 Little Luxuries To Buy

The problems are materializing in Dollar Tree's profit margin. Operating margin has slipped to just 0.33% in the last 12 months, compared to around 8% historically. Investors are worried that Dollar Tree can't rein in its costs, which will lead to structurally lower profit margins going forward -- which will lead to weak EPS.

Shares of Dollar Tree Inc. DLTR inched 0.22% higher to $69.63 Wednesday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX rising 0.71% to 5,792.

Let's take a closer look at Dollar General and Dollar Tree to understand what's gone wrong. Let's also explore what the future holds for these two beaten-down stocks, to determine which has more potential for a turnaround.