Designer Brands Inc (DBI)vsThe Home Depot Inc (HD)
DBI
Designer Brands Inc
$8.44
-7.35%
CONSUMER CYCLICAL · Cap: $428.33M
HD
The Home Depot Inc
$310.78
+0.51%
CONSUMER CYCLICAL · Cap: $310.62B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 5659% more annual revenue ($166.59B vs $2.89B). HD leads profitability with a 8.4% profit margin vs -0.3%. HD appears more attractively valued with a PEG of 1.76. HD earns a higher WallStSmart Score of 54/100 (C-).
DBI
Hold50
out of 100
Grade: D+
HD
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+77.0%
Fair Value
$28.85
Current Price
$8.44
$20.41 discount
Margin of Safety
-46.5%
Fair Value
$212.07
Current Price
$310.78
$98.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 45.8% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
0.0% revenue growth
Smaller company, higher risk/reward
Negative free cash flow — burning cash
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 22.3x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : DBI
The strongest argument for DBI centers on Price/Book, EPS Growth.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bear Case : DBI
The primary concerns for DBI are PEG Ratio, Revenue Growth, Market Cap. Debt-to-equity of 4.37 is elevated, increasing financial risk.
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
DBI profiles as a turnaround stock while HD is a value play — different risk/reward profiles.
DBI carries more volatility with a beta of 1.21 — expect wider price swings.
HD is growing revenue faster at 4.8% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Bottom Line
HD scores higher overall (54/100 vs 50/100). DBI offers better value entry with a 77.0% 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.
Designer Brands Inc
CONSUMER CYCLICAL · FOOTWEAR & ACCESSORIES · USA
Designer Brands Inc. designs, manufactures and retails women's, men's and children's footwear and accessories primarily in North America. The company is headquartered in Columbus, Ohio.
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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