The Home Depot Inc (HD)vsThe Coca-Cola Company (KO)
HD
The Home Depot Inc
$332.51
+0.48%
CONSUMER CYCLICAL · Cap: $319.31B
KO
The Coca-Cola Company
$75.25
+0.78%
CONSUMER DEFENSIVE · Cap: $321.39B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 244% more annual revenue ($164.68B vs $47.94B). KO leads profitability with a 27.3% profit margin vs 8.6%. KO appears more attractively valued with a PEG of 2.33. KO earns a higher WallStSmart Score of 57/100 (C).
HD
Hold50
out of 100
Grade: D+
KO
Buy57
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
-97.1%
Fair Value
$38.18
Current Price
$75.25
$37.07 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
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Keeps 27 of every $100 in revenue as profit
Strong operational efficiency at 24.7%
Generating 2.9B 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
Trading at 10.1x book value
2.4% revenue growth
3.6% earnings growth
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 27.3% and operating margin at 24.7%.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : KO
The primary concerns for KO are PEG Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.04 — expect wider price swings.
KO is growing revenue faster at 2.4% — sustainability is the question.
KO generates stronger free cash flow (2.9B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KO scores higher overall (57/100 vs 50/100), backed by strong 27.3% margins. 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.
The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
Visit Website →Compare with Other HOME IMPROVEMENT RETAIL Stocks
Want to dig deeper into these stocks?