WallStSmart

Dutch Bros Inc (BROS)vsThe Home Depot Inc (HD)

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Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 8887% more annual revenue ($169.18B vs $1.88B). HD leads profitability with a 8.4% profit margin vs 4.9%. BROS appears more attractively valued with a PEG of 1.68. HD earns a higher WallStSmart Score of 58/100 (C).

BROS

Buy

57

out of 100

Grade: C

Growth: 10.0Profit: 5.5Value: 5.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.07

HD

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 4.0Quality: 5.0
Piotroski: 2/9Altman Z: 3.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BROSUndervalued (+42.4%)

Margin of Safety

+42.4%

Fair Value

$58.67

Current Price

$33.77

$24.90 discount

UndervaluedFair: $58.67Overvalued
HDSignificantly Overvalued (-57.0%)

Margin of Safety

-57.0%

Fair Value

$218.75

Current Price

$343.47

$124.72 premium

UndervaluedFair: $218.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BROS2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
32.5%10/10

Revenue surging 32.5% year-over-year

EPS GrowthGrowth
37.3%8/10

Earnings expanding 37.3% YoY

HD4 strengths · Avg: 9.5/10
Market CapQuality
$328.44B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
85.6%10/10

Every $100 of equity generates 86 in profit

Altman Z-ScoreHealth
3.5910/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$4.51B8/10

Generating 4.5B in free cash flow

Areas to Watch

BROS4 concerns · Avg: 3.0/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Profit MarginProfitability
4.9%3/10

4.9% margin — thin

Debt/EquityHealth
1.563/10

Elevated debt levels

P/E RatioValuation
59.6x2/10

Premium valuation, high expectations priced in

HD4 concerns · Avg: 3.3/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

EPS GrowthGrowth
4.6%4/10

4.6% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Price/BookValuation
20.6x2/10

Trading at 20.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : BROS

The strongest argument for BROS centers on Revenue Growth, EPS Growth. Revenue growth of 32.5% demonstrates continued momentum.

Bull Case : HD

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

Bear Case : BROS

The primary concerns for BROS are PEG Ratio, Profit Margin, Debt/Equity. A P/E of 59.6x leaves little room for execution misses. Debt-to-equity of 1.56 is elevated, increasing financial risk.

Bear Case : HD

The primary concerns for HD are PEG Ratio, EPS Growth, Piotroski F-Score. Debt-to-equity of 3.77 is elevated, increasing financial risk.

Key Dynamics to Monitor

BROS profiles as a hypergrowth stock while HD is a value play — different risk/reward profiles.

BROS carries more volatility with a beta of 2.31 — expect wider price swings.

BROS is growing revenue faster at 32.5% — sustainability is the question.

HD generates stronger free cash flow (4.5B), providing more financial flexibility.

Bottom Line

HD scores higher overall (58/100 vs 57/100). BROS offers better value entry with a 42.4% margin of safety. 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.

Dutch Bros Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Dutch Bros Inc. operates and franchises convenience stores. The company is headquartered in Grants Pass, Oregon.

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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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