WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 5577% more annual revenue ($169.18B vs $2.98B). HD leads profitability with a 8.4% profit margin vs 6.5%. HD appears more attractively valued with a PEG of 1.73. CRI earns a higher WallStSmart Score of 73/100 (B).

CRI

Strong Buy

73

out of 100

Grade: B

Growth: 6.0Profit: 6.0Value: 8.0Quality: 6.0
Piotroski: 3/9Altman Z: 2.52

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

CRIUndervalued (+36.8%)

Margin of Safety

+36.8%

Fair Value

$59.81

Current Price

$30.43

$29.38 discount

UndervaluedFair: $59.81Overvalued
HDSignificantly Overvalued (-41.8%)

Margin of Safety

-41.8%

Fair Value

$217.78

Current Price

$308.74

$90.96 premium

UndervaluedFair: $217.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRI4 strengths · Avg: 9.5/10
P/E RatioValuation
6.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

EPS GrowthGrowth
47146.0%10/10

Earnings expanding 47146.0% YoY

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

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

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

Expensive relative to growth rate

Market CapQuality
$1.18B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.5%3/10

6.5% margin — thin

Debt/EquityHealth
1.153/10

Elevated debt levels

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

Expensive relative to growth rate

Price/BookValuation
18.5x4/10

Trading at 18.5x 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 : CRI

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

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.

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

HD carries more volatility with a beta of 0.95 — expect wider price swings.

HD is growing revenue faster at 5.7% — sustainability is the question.

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

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

Bottom Line

CRI scores higher overall (73/100 vs 58/100). Both earn "Strong 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.

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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