AutoZone Inc (AZO)vsThe Home Depot Inc (HD)
AZO
AutoZone Inc
$3,156.76
+0.43%
CONSUMER CYCLICAL · Cap: $50.47B
HD
The Home Depot Inc
$328.95
+3.60%
CONSUMER CYCLICAL · Cap: $308.91B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 732% more annual revenue ($169.18B vs $20.34B). AZO leads profitability with a 12.7% profit margin vs 8.4%. AZO appears more attractively valued with a PEG of 1.31. AZO earns a higher WallStSmart Score of 57/100 (C).
AZO
Buy57
out of 100
Grade: C
HD
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-78.5%
Fair Value
$2092.80
Current Price
$3156.76
$1063.96 premium
Margin of Safety
-46.4%
Fair Value
$218.46
Current Price
$328.95
$110.49 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Large-cap with strong market position
Strong operational efficiency at 20.0%
Mega-cap, among the largest globally
Every $100 of equity generates 86 in profit
Safe zone — low bankruptcy risk
Generating 4.5B in free cash flow
Areas to Watch
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Trading at 19.8x book value
4.6% earnings growth
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : AZO
The strongest argument for AZO centers on Debt/Equity, Market Cap, Operating Margin. PEG of 1.31 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 : AZO
The primary concerns for AZO are Return on Equity, Piotroski F-Score.
Bear Case : HD
The primary concerns for HD are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 3.77 is elevated, increasing financial risk.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.00 — expect wider price swings.
HD is growing revenue faster at 5.7% — sustainability is the question.
Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AZO scores higher overall (57/100 vs 56/100). Both earn "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.
AutoZone Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
AutoZone, Inc. is an American retailer of aftermarket automotive parts and accessories, the largest in the United States.
Visit Website →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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