WallStSmart

Designer Brands Inc (DBI)vsThe Home Depot Inc (HD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 5640% more annual revenue ($166.59B vs $2.90B). HD leads profitability with a 8.4% profit margin vs 0.4%. HD appears more attractively valued with a PEG of 1.88. HD earns a higher WallStSmart Score of 54/100 (C-).

DBI

Buy

54

out of 100

Grade: C-

Growth: 5.3Profit: 4.5Value: 6.7Quality: 4.5
Piotroski: 5/9Altman Z: 1.79

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

DBIUndervalued (+76.8%)

Margin of Safety

+76.8%

Fair Value

$28.66

Current Price

$6.20

$22.46 discount

UndervaluedFair: $28.66Overvalued
HDSignificantly Overvalued (-61.3%)

Margin of Safety

-61.3%

Fair Value

$213.57

Current Price

$333.33

$119.76 premium

UndervaluedFair: $213.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DBI2 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

EPS GrowthGrowth
45.8%8/10

Earnings expanding 45.8% YoY

HD4 strengths · Avg: 9.5/10
Market CapQuality
$337.89B10/10

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

DBI4 concerns · Avg: 4.0/10
PEG RatioValuation
2.344/10

Expensive relative to growth rate

P/E RatioValuation
26.8x4/10

Moderate valuation

Revenue GrowthGrowth
1.4%4/10

1.4% revenue growth

Altman Z-ScoreHealth
1.794/10

Distress zone — elevated risk

HD4 concerns · Avg: 3.3/10
PEG RatioValuation
1.884/10

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
23.9x2/10

Trading at 23.9x book value

Comparative Analysis Report

WallStSmart Research

Bull 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, P/E Ratio, Revenue Growth. Debt-to-equity of 4.37 is elevated, increasing financial risk. Thin 0.4% 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

DBI carries more volatility with a beta of 1.25 — 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.

Monitor FOOTWEAR & ACCESSORIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DBI scores higher overall (54/100 vs 54/100). 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.

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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