The Home Depot Inc (HD)vsKB Home (KBH)
HD
The Home Depot Inc
$310.78
+0.73%
CONSUMER CYCLICAL · Cap: $310.62B
KBH
KB Home
$52.04
-0.04%
CONSUMER CYCLICAL · Cap: $3.38B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 2713% more annual revenue ($166.59B vs $5.92B). HD leads profitability with a 8.4% profit margin vs 6.0%. 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-
KBH
Hold48
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 KBH.
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
Attractively priced relative to earnings
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 22.3x book value
6.0% margin — thin
Operating margin of 3.0%
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : KBH
The strongest argument for KBH centers on P/E Ratio, Price/Book, Altman Z-Score.
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 : KBH
The primary concerns for KBH are Profit Margin, Operating Margin, Piotroski F-Score.
Key Dynamics to Monitor
KBH carries more volatility with a beta of 1.38 — 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 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.
KB Home
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
KB Home is a home construction company in the United States. The company is headquartered in Los Angeles, California.
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