AutoNation Inc (AN)vsThe Home Depot Inc (HD)
AN
AutoNation Inc
$203.38
-0.94%
CONSUMER CYCLICAL · Cap: $7.22B
HD
The Home Depot Inc
$339.50
+0.19%
CONSUMER CYCLICAL · Cap: $338.15B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 496% more annual revenue ($164.68B vs $27.63B). HD leads profitability with a 8.6% profit margin vs 2.4%. AN appears more attractively valued with a PEG of 0.74. AN earns a higher WallStSmart Score of 58/100 (C).
AN
Buy58
out of 100
Grade: C
HD
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.4%
Fair Value
$151.23
Current Price
$203.38
$52.15 premium
Margin of Safety
-40.2%
Fair Value
$242.18
Current Price
$339.50
$97.32 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Growing faster than its price suggests
Attractively priced relative to earnings
Mega-cap, among the largest globally
Every $100 of equity generates 146 in profit
Safe zone — low bankruptcy risk
Generating 2.3B in free cash flow
Areas to Watch
1.3% earnings growth
2.4% margin — thin
Operating margin of 4.0%
Weak financial health signals
Weak financial health signals
Expensive relative to growth rate
Trading at 26.4x book value
Revenue declined 3.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : AN
The strongest argument for AN centers on Altman Z-Score, Return on Equity, PEG Ratio. PEG of 0.74 suggests the stock is reasonably priced for its growth.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bear Case : AN
The primary concerns for AN are EPS Growth, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.08 — expect wider price swings.
HD is growing revenue faster at -3.8% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AN scores higher overall (58/100 vs 45/100). 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.
AutoNation Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.
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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