WallStSmart

Carter’s Inc (CRI)vsThe Home Depot Inc (HD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 5548% more annual revenue ($166.59B vs $2.95B). HD leads profitability with a 8.4% profit margin vs 3.1%. HD appears more attractively valued with a PEG of 1.76. HD earns a higher WallStSmart Score of 54/100 (C-).

CRI

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 5.0Value: 7.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.52

HD

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 7.5Value: 4.0Quality: 5.0
Piotroski: 2/9Altman Z: 3.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRIUndervalued (+36.7%)

Margin of Safety

+36.7%

Fair Value

$59.72

Current Price

$38.19

$21.53 discount

UndervaluedFair: $59.72Overvalued
HDSignificantly Overvalued (-46.5%)

Margin of Safety

-46.5%

Fair Value

$212.07

Current Price

$310.78

$98.71 premium

UndervaluedFair: $212.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRI2 strengths · Avg: 8.0/10
P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

HD4 strengths · Avg: 9.5/10
Market CapQuality
$310.62B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
101.0%10/10

Every $100 of equity generates 101 in profit

Altman Z-ScoreHealth
3.5910/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$5.19B8/10

Generating 5.2B in free cash flow

Areas to Watch

CRI4 concerns · Avg: 3.3/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

Market CapQuality
$1.42B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.1%3/10

3.1% margin — thin

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

HD4 concerns · Avg: 3.3/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CRI

The strongest argument for CRI centers on P/E Ratio, Price/Book.

Bull Case : HD

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

Bear Case : CRI

The primary concerns for CRI are PEG Ratio, Market Cap, Profit Margin. Thin 3.1% margins leave little buffer for downturns.

Bear Case : HD

The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.

Key Dynamics to Monitor

HD carries more volatility with a beta of 1.00 — expect wider price swings.

CRI is growing revenue faster at 8.1% — sustainability is the question.

HD generates stronger free cash flow (5.2B), providing more financial flexibility.

Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HD scores higher overall (54/100 vs 50/100). CRI offers better value entry with a 36.7% margin of safety. 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.

Carter’s Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Carter's, Inc. designs, supplies, and markets branded children's clothing under the brands Carter's, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter's little baby basics, and other brands in the United States and internationally. The company is headquartered in Atlanta, Georgia.

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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