Dick’s Sporting Goods Inc (DKS)vsThe Home Depot Inc (HD)
DKS
Dick’s Sporting Goods Inc
$136.17
-3.77%
CONSUMER CYCLICAL · Cap: $14.22B
HD
The Home Depot Inc
$318.04
-0.30%
CONSUMER CYCLICAL · Cap: $308.91B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 700% more annual revenue ($169.18B vs $21.15B). HD leads profitability with a 8.4% profit margin vs 4.0%. DKS appears more attractively valued with a PEG of 1.15. DKS earns a higher WallStSmart Score of 63/100 (C+).
DKS
Buy63
out of 100
Grade: C+
HD
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.1%
Fair Value
$149.07
Current Price
$136.17
$12.90 premium
Margin of Safety
-46.4%
Fair Value
$218.46
Current Price
$318.04
$99.58 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 53.2% year-over-year
Attractively priced relative to earnings
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 86 in profit
Safe zone — low bankruptcy risk
Generating 4.5B in free cash flow
Areas to Watch
4.0% margin — thin
Elevated debt levels
Weak financial health signals
Earnings declined 25.7%
Expensive relative to growth rate
Trading at 19.1x book value
4.6% earnings growth
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DKS
The strongest argument for DKS centers on Revenue Growth, P/E Ratio, Price/Book. Revenue growth of 53.2% demonstrates continued momentum. PEG of 1.15 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 : DKS
The primary concerns for DKS are Profit Margin, Debt/Equity, Piotroski F-Score. Thin 4.0% margins leave little buffer for downturns.
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
DKS profiles as a hypergrowth stock while HD is a value play — different risk/reward profiles.
DKS carries more volatility with a beta of 1.10 — expect wider price swings.
DKS is growing revenue faster at 53.2% — sustainability is the question.
HD generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
DKS scores higher overall (63/100 vs 56/100) and 53.2% 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.
Dick’s Sporting Goods Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
DICK'S Sporting Goods, Inc., is a sporting goods retailer primarily in the eastern United States. The company is headquartered in Coraopolis, Pennsylvania.
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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