Baidu Inc (BIDU)vsThe Home Depot Inc (HD)
BIDU
Baidu Inc
$115.60
+2.73%
COMMUNICATION SERVICES · Cap: $38.29B
HD
The Home Depot Inc
$332.51
+0.48%
CONSUMER CYCLICAL · Cap: $319.31B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 28% more annual revenue ($164.68B vs $129.08B). HD leads profitability with a 8.6% profit margin vs 4.3%. BIDU appears more attractively valued with a PEG of 0.66. HD earns a higher WallStSmart Score of 50/100 (D+).
BIDU
Hold46
out of 100
Grade: D+
HD
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1147.8%
Fair Value
$11.63
Current Price
$115.60
$103.97 premium
Margin of Safety
-241.7%
Fair Value
$96.83
Current Price
$332.51
$235.68 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
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
ROE of 1.9% — below average capital efficiency
4.3% margin — thin
Operating margin of 4.5%
Weak financial health signals
Weak financial health signals
Expensive relative to growth rate
Trading at 25.9x book value
Revenue declined 3.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : BIDU
The strongest argument for BIDU centers on Price/Book, PEG Ratio. PEG of 0.66 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 : BIDU
The primary concerns for BIDU are Return on Equity, Profit Margin, Operating Margin. A P/E of 65.8x leaves little room for execution misses. Thin 4.3% 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 1.04 — 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 INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (50/100 vs 46/100). Both earn "Hold" 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.
Baidu Inc
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · China
Baidu, Inc. provides Internet search services primarily in China. The company is headquartered in Beijing, China.
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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