WallStSmart

Ambev SA ADR (ABEV)vsThe Home Depot Inc (HD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 87% more annual revenue ($164.68B vs $88.21B). ABEV leads profitability with a 17.7% profit margin vs 8.6%. ABEV appears more attractively valued with a PEG of 2.31. ABEV earns a higher WallStSmart Score of 57/100 (C).

ABEV

Buy

57

out of 100

Grade: C

Growth: 3.3Profit: 8.5Value: 7.3Quality: 5.8
Piotroski: 5/9Altman Z: 2.39

HD

Hold

50

out of 100

Grade: D+

Growth: 2.7Profit: 7.5Value: 3.3Quality: 5.8
Piotroski: 2/9Altman Z: 3.82
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABEVUndervalued (+74.4%)

Margin of Safety

+74.4%

Fair Value

$11.91

Current Price

$3.29

$8.62 discount

UndervaluedFair: $11.91Overvalued
HDSignificantly Overvalued (-30.3%)

Margin of Safety

-30.3%

Fair Value

$243.58

Current Price

$317.45

$73.87 premium

UndervaluedFair: $243.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABEV5 strengths · Avg: 8.6/10
Free Cash FlowQuality
$11.62B10/10

Generating 11.6B in free cash flow

Market CapQuality
$53.50B9/10

Large-cap with strong market position

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.5%8/10

Strong operational efficiency at 26.5%

HD4 strengths · Avg: 9.5/10
Market CapQuality
$321.36B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
145.5%10/10

Every $100 of equity generates 146 in profit

Altman Z-ScoreHealth
3.8210/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$2.29B8/10

Generating 2.3B in free cash flow

Areas to Watch

ABEV3 concerns · Avg: 3.3/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

EPS GrowthGrowth
2.2%4/10

2.2% earnings growth

Revenue GrowthGrowth
-0.1%2/10

Revenue declined 0.1%

HD4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.882/10

Expensive relative to growth rate

Price/BookValuation
24.7x2/10

Trading at 24.7x book value

Revenue GrowthGrowth
-3.8%2/10

Revenue declined 3.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : ABEV

The strongest argument for ABEV centers on Free Cash Flow, Market Cap, P/E Ratio. Profitability is solid with margins at 17.7% and operating margin at 26.5%.

Bull Case : HD

The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.

Bear Case : ABEV

The primary concerns for ABEV are PEG Ratio, EPS Growth, Revenue Growth.

Bear Case : HD

The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.

Key Dynamics to Monitor

ABEV profiles as a declining stock while HD is a value play — different risk/reward profiles.

HD carries more volatility with a beta of 1.00 — expect wider price swings.

ABEV is growing revenue faster at -0.1% — sustainability is the question.

ABEV generates stronger free cash flow (11.6B), providing more financial flexibility.

Bottom Line

ABEV scores higher overall (57/100 vs 50/100), backed by strong 17.7% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Ambev SA ADR

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Ambev SA produces, distributes and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt and food products in the Americas. The company is headquartered in So Paulo, Brazil.

The Home Depot Inc

CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA

The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.

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