WallStSmart

Atour Lifestyle Holdings Limited American Depositary Shares (ATAT)vsThe Home Depot Inc (HD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 1458% more annual revenue ($166.59B vs $10.70B). ATAT leads profitability with a 17.2% profit margin vs 8.4%. ATAT trades at a lower P/E of 17.4x. ATAT earns a higher WallStSmart Score of 74/100 (B).

ATAT

Strong Buy

74

out of 100

Grade: B

Growth: 10.0Profit: 9.0Value: 7.7Quality: 8.0
Piotroski: 5/9Altman Z: 3.11

HD

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 7.5Value: 4.0Quality: 5.0
Piotroski: 2/9Altman Z: 3.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ATATUndervalued (+40.4%)

Margin of Safety

+40.4%

Fair Value

$65.84

Current Price

$31.81

$34.03 discount

UndervaluedFair: $65.84Overvalued
HDSignificantly Overvalued (-57.4%)

Margin of Safety

-57.4%

Fair Value

$212.44

Current Price

$326.62

$114.18 premium

UndervaluedFair: $212.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ATAT6 strengths · Avg: 9.3/10
Return on EquityProfitability
50.1%10/10

Every $100 of equity generates 50 in profit

Revenue GrowthGrowth
47.5%10/10

Revenue surging 47.5% year-over-year

EPS GrowthGrowth
91.4%10/10

Earnings expanding 91.4% YoY

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

Operating MarginProfitability
23.6%8/10

Strong operational efficiency at 23.6%

HD4 strengths · Avg: 9.5/10
Market CapQuality
$336.21B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
101.0%10/10

Every $100 of equity generates 101 in profit

Altman Z-ScoreHealth
3.5910/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$5.19B8/10

Generating 5.2B in free cash flow

Areas to Watch

ATAT1 concerns · Avg: 4.0/10
Price/BookValuation
8.0x4/10

Trading at 8.0x book value

HD4 concerns · Avg: 3.3/10
PEG RatioValuation
1.864/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Price/BookValuation
23.5x2/10

Trading at 23.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ATAT

The strongest argument for ATAT centers on Return on Equity, Revenue Growth, EPS Growth. Profitability is solid with margins at 17.2% and operating margin at 23.6%. Revenue growth of 47.5% demonstrates continued momentum.

Bull Case : HD

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

Bear Case : ATAT

The primary concerns for ATAT are Price/Book.

Bear Case : HD

The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.

Key Dynamics to Monitor

ATAT profiles as a growth stock while HD is a value play — different risk/reward profiles.

HD carries more volatility with a beta of 0.97 — expect wider price swings.

ATAT is growing revenue faster at 47.5% — sustainability is the question.

HD generates stronger free cash flow (5.2B), providing more financial flexibility.

Bottom Line

ATAT scores higher overall (74/100 vs 51/100), backed by strong 17.2% margins and 47.5% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Atour Lifestyle Holdings Limited American Depositary Shares

CONSUMER CYCLICAL · LODGING · USA

Atour Lifestyle Holdings Limited, operates a chain of hotels in China. The company is headquartered in Shanghai, China.

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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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