The Home Depot Inc (HD)vsHoneywell International Inc (HON)
HD
The Home Depot Inc
$332.51
+0.48%
CONSUMER CYCLICAL · Cap: $319.31B
HON
Honeywell International Inc
$225.79
+1.90%
INDUSTRIALS · Cap: $143.53B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 340% more annual revenue ($164.68B vs $37.44B). HON leads profitability with a 12.6% profit margin vs 8.6%. HON appears more attractively valued with a PEG of 2.01. HON earns a higher WallStSmart Score of 50/100 (C-).
HD
Hold50
out of 100
Grade: D+
HON
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-241.7%
Fair Value
$96.83
Current Price
$332.51
$235.68 premium
Margin of Safety
-416.2%
Fair Value
$47.19
Current Price
$225.79
$178.60 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 146 in profit
Safe zone — low bankruptcy risk
Generating 2.3B in free cash flow
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 1.1B in free cash flow
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 25.9x book value
Revenue declined 3.8%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 10.3x book value
Revenue declined 3.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : HON
The strongest argument for HON centers on Market Cap, Return on Equity, Free Cash Flow.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : HON
The primary concerns for HON are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
HD profiles as a value stock while HON is a declining play — different risk/reward profiles.
HD carries more volatility with a beta of 1.04 — expect wider price swings.
HON is growing revenue faster at -3.3% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
HD scores higher overall (50/100 vs 50/100). Both earn "Hold" 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.
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.
Honeywell International Inc
INDUSTRIALS · CONGLOMERATES · USA
Honeywell International Inc. is an American publicly traded, multinational conglomerate headquartered in Charlotte, North Carolina. It primarily operates in four areas of business: aerospace, building technologies, performance materials and technologies (PMT), and safety and productivity solutions (SPS).
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