GreenTree Hospitality Group Ltd (GHG)vsThe Home Depot Inc (HD)
GHG
GreenTree Hospitality Group Ltd
$0.94
-10.00%
CONSUMER CYCLICAL · Cap: $101.91M
HD
The Home Depot Inc
$282.85
+0.14%
CONSUMER CYCLICAL · Cap: $296.03B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 16715% more annual revenue ($169.18B vs $1.01B). HD leads profitability with a 8.4% profit margin vs 3.2%. GHG trades at a lower P/E of 20.2x. HD earns a higher WallStSmart Score of 56/100 (C).
GHG
Hold40
out of 100
Grade: F
HD
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.9%
Fair Value
$8.41
Current Price
$0.94
$7.47 discount
Margin of Safety
-30.4%
Fair Value
$218.15
Current Price
$282.85
$64.70 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 20.5%
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
Smaller company, higher risk/reward
3.2% margin — thin
ROE of -1.1% — below average capital efficiency
Revenue declined 18.7%
Trading at 17.0x book value
4.6% earnings growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : GHG
The strongest argument for GHG centers on Price/Book, Operating Margin.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bear Case : GHG
The primary concerns for GHG are Market Cap, Profit Margin, Return on Equity. Thin 3.2% margins leave little buffer for downturns.
Bear Case : HD
The primary concerns for HD are Price/Book, EPS Growth, Piotroski F-Score. 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 LODGING industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (56/100 vs 40/100). GHG offers better value entry with a 82.9% 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.
GreenTree Hospitality Group Ltd
CONSUMER CYCLICAL · LODGING · China
GreenTree Hospitality Group Ltd., develops and sells leased and operated, franchised and managed hotels under the GreenTree brand in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.
Visit Website →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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