WallStSmart

BHP Group Limited (BHP)vsThe Home Depot Inc (HD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 205% more annual revenue ($164.68B vs $53.99B). BHP leads profitability with a 19.0% profit margin vs 8.6%. HD appears more attractively valued with a PEG of 2.94. BHP earns a higher WallStSmart Score of 64/100 (C+).

BHP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 8.5Value: 7.3Quality: 5.0

HD

Hold

50

out of 100

Grade: D+

Growth: 2.7Profit: 7.5Value: 4.7Quality: 5.8
Piotroski: 2/9Altman Z: 3.82
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BHPUndervalued (+57.8%)

Margin of Safety

+57.8%

Fair Value

$188.60

Current Price

$68.77

$119.83 discount

UndervaluedFair: $188.60Overvalued
HDSignificantly Overvalued (-241.7%)

Margin of Safety

-241.7%

Fair Value

$96.83

Current Price

$332.51

$235.68 premium

UndervaluedFair: $96.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BHP6 strengths · Avg: 8.7/10
Operating MarginProfitability
40.7%10/10

Strong operational efficiency at 40.7%

Market CapQuality
$166.46B9/10

Large-cap with strong market position

Return on EquityProfitability
24.7%9/10

Every $100 of equity generates 25 in profit

P/E RatioValuation
16.2x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
27.5%8/10

Earnings expanding 27.5% YoY

Free Cash FlowQuality
$4.31B8/10

Generating 4.3B in free cash flow

HD4 strengths · Avg: 9.5/10
Market CapQuality
$319.31B10/10

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

BHP1 concerns · Avg: 2.0/10
PEG RatioValuation
5.952/10

Expensive relative to growth rate

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

Weak financial health signals

PEG RatioValuation
2.942/10

Expensive relative to growth rate

Price/BookValuation
25.9x2/10

Trading at 25.9x book value

Revenue GrowthGrowth
-3.8%2/10

Revenue declined 3.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : BHP

The strongest argument for BHP centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 19.0% and operating margin at 40.7%. Revenue growth of 10.8% demonstrates continued momentum.

Bull Case : HD

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

Bear Case : BHP

The primary concerns for BHP are PEG Ratio.

Bear Case : HD

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

Key Dynamics to Monitor

BHP profiles as a mature stock while HD is a value play — different risk/reward profiles.

HD carries more volatility with a beta of 1.04 — expect wider price swings.

BHP is growing revenue faster at 10.8% — sustainability is the question.

BHP generates stronger free cash flow (4.3B), providing more financial flexibility.

Bottom Line

BHP scores higher overall (64/100 vs 50/100), backed by strong 19.0% margins and 10.8% revenue growth. 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.

BHP Group Limited

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

BHP Group engages in the natural resources business in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America and internationally. The company is headquartered in Melbourne, Australia.

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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