WallStSmart

GreenTree Hospitality Group Ltd (GHG)vsThe Home Depot Inc (HD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 15081% more annual revenue ($166.59B vs $1.10B). GHG leads profitability with a 15.2% profit margin vs 8.4%. GHG trades at a lower P/E of 4.7x. HD earns a higher WallStSmart Score of 51/100 (C-).

GHG

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 4.0Value: 8.3Quality: 5.0
Piotroski: 5/9Altman Z: 0.77

HD

Buy

51

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

GHGUndervalued (+85.1%)

Margin of Safety

+85.1%

Fair Value

$9.66

Current Price

$1.13

$8.53 discount

UndervaluedFair: $9.66Overvalued
HDSignificantly Overvalued (-64.2%)

Margin of Safety

-64.2%

Fair Value

$212.44

Current Price

$352.28

$139.84 premium

UndervaluedFair: $212.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GHG2 strengths · Avg: 10.0/10
P/E RatioValuation
4.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

HD4 strengths · Avg: 9.5/10
Market CapQuality
$347.85B10/10

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

GHG4 concerns · Avg: 2.3/10
Market CapQuality
$114.01M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-1.1%2/10

ROE of -1.1% — below average capital efficiency

Revenue GrowthGrowth
-29.5%2/10

Revenue declined 29.5%

EPS GrowthGrowth
-6.6%2/10

Earnings declined 6.6%

HD4 concerns · Avg: 3.3/10
PEG RatioValuation
1.974/10

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
25.3x2/10

Trading at 25.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : GHG

The strongest argument for GHG centers on P/E Ratio, Price/Book. Profitability is solid with margins at 15.2% and operating margin at -4.5%.

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, Return on Equity, Revenue Growth.

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

GHG profiles as a declining stock while HD is a value play — different risk/reward profiles.

HD carries more volatility with a beta of 0.97 — 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 (51/100 vs 43/100). GHG offers better value entry with a 85.1% 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.

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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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