The Home Depot Inc (HD)vsHovnanian Enterprises Inc (HOV)
HD
The Home Depot Inc
$310.78
+0.73%
CONSUMER CYCLICAL · Cap: $310.62B
HOV
Hovnanian Enterprises Inc
$109.00
-2.50%
CONSUMER CYCLICAL · Cap: $672.08M
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 5609% more annual revenue ($166.59B vs $2.92B). HD leads profitability with a 8.4% profit margin vs 1.3%. HD appears more attractively valued with a PEG of 1.76. HD earns a higher WallStSmart Score of 54/100 (C-).
HD
Buy54
out of 100
Grade: C-
HOV
Hold45
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-46.5%
Fair Value
$212.07
Current Price
$310.78
$98.71 premium
Intrinsic value data unavailable for HOV.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 22.3x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Grey zone — moderate risk
Smaller company, higher risk/reward
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : HOV
The strongest argument for HOV centers on Price/Book.
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.
Bear Case : HOV
The primary concerns for HOV are PEG Ratio, P/E Ratio, Altman Z-Score. Thin 1.3% margins leave little buffer for downturns.
Key Dynamics to Monitor
HOV carries more volatility with a beta of 1.87 — 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 HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (54/100 vs 45/100). 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.
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.
Hovnanian Enterprises Inc
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
Hovnanian Enterprises, Inc. is dedicated to the design, construction, marketing and sales of residential homes in the United States. The company is headquartered in Matawan, New Jersey.
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