WallStSmart

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

VS

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 1.36. BROS earns a higher WallStSmart Score of 62/100 (C+).

BROS

Buy

62

out of 100

Grade: C+

Growth: 10.0Profit: 5.5Value: 6.0Quality: 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 (+35.0%)

Margin of Safety

+35.0%

Fair Value

$59.62

Current Price

$39.15

$20.47 discount

UndervaluedFair: $59.62Overvalued
HDSignificantly Overvalued (-38.8%)

Margin of Safety

-38.8%

Fair Value

$217.98

Current Price

$305.44

$87.47 premium

UndervaluedFair: $217.98Overvalued

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
$304.98B10/10

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: 2.5/10
Profit MarginProfitability
4.9%3/10

4.9% margin — thin

Debt/EquityHealth
1.513/10

Elevated debt levels

P/E RatioValuation
54.4x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.072/10

Distress zone — elevated risk

HD4 concerns · Avg: 3.8/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Price/BookValuation
18.3x4/10

Trading at 18.3x book value

EPS GrowthGrowth
4.6%4/10

4.6% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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. PEG of 1.36 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 : BROS

The primary concerns for BROS are Profit Margin, Debt/Equity, P/E Ratio. A P/E of 54.4x leaves little room for execution misses. Debt-to-equity of 1.51 is elevated, increasing financial risk.

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

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

BROS carries more volatility with a beta of 2.29 — 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

BROS scores higher overall (62/100 vs 58/100) and 32.5% revenue growth. 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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