The Home Depot Inc (HD)vsInternational Paper (IP)
HD
The Home Depot Inc
$299.98
-0.84%
CONSUMER CYCLICAL · Cap: $304.98B
IP
International Paper
$34.53
-2.87%
CONSUMER CYCLICAL · Cap: $19.32B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 599% more annual revenue ($169.18B vs $24.20B). HD leads profitability with a 8.4% profit margin vs -14.2%. IP appears more attractively valued with a PEG of 0.98. HD earns a higher WallStSmart Score of 58/100 (C).
HD
Buy58
out of 100
Grade: C
IP
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.8%
Fair Value
$217.98
Current Price
$299.98
$82.00 premium
Margin of Safety
-73.1%
Fair Value
$28.41
Current Price
$34.53
$6.12 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Trading at 18.0x book value
4.6% earnings growth
Weak financial health signals
Operating margin of 2.3%
Weak financial health signals
ROE of -23.8% — below average capital efficiency
Revenue declined 2.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : IP
The strongest argument for IP centers on Price/Book, PEG Ratio. PEG of 0.98 suggests the stock is reasonably priced for its growth.
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.
Bear Case : IP
The primary concerns for IP are Operating Margin, Piotroski F-Score, Return on Equity.
Key Dynamics to Monitor
HD profiles as a value stock while IP is a turnaround play — different risk/reward profiles.
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.
Bottom Line
HD scores higher overall (58/100 vs 48/100). 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.
International Paper
CONSUMER CYCLICAL · PACKAGING & CONTAINERS · USA
The International Paper Company (NYSE: IP) is an American pulp and paper company, the largest such company in the world. The company is headquartered in Memphis, Tennessee.
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