WallStSmart

The Home Depot Inc (HD)vsKarat Packaging Inc (KRT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 34530% more annual revenue ($166.59B vs $481.07M). HD leads profitability with a 8.4% profit margin vs 6.6%. KRT trades at a lower P/E of 18.0x. HD earns a higher WallStSmart Score of 54/100 (C-).

HD

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 7.5Value: 4.0Quality: 5.0
Piotroski: 2/9Altman Z: 3.59

KRT

Hold

48

out of 100

Grade: D+

Growth: 5.3Profit: 6.5Value: 4.3Quality: 7.0
Piotroski: 3/9Altman Z: 3.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HDSignificantly Overvalued (-46.5%)

Margin of Safety

-46.5%

Fair Value

$212.07

Current Price

$310.78

$98.71 premium

UndervaluedFair: $212.07Overvalued
KRTSignificantly Overvalued (-32.8%)

Margin of Safety

-32.8%

Fair Value

$19.68

Current Price

$28.45

$8.77 premium

UndervaluedFair: $19.68Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HD4 strengths · Avg: 9.5/10
Market CapQuality
$310.62B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
101.0%10/10

Every $100 of equity generates 101 in profit

Altman Z-ScoreHealth
3.5910/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$5.19B8/10

Generating 5.2B in free cash flow

KRT2 strengths · Avg: 9.5/10
Altman Z-ScoreHealth
3.4810/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
21.6%9/10

Every $100 of equity generates 22 in profit

Areas to Watch

HD4 concerns · Avg: 3.3/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

KRT3 concerns · Avg: 3.0/10
Market CapQuality
$567.97M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.6%3/10

6.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : HD

The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.

Bull Case : KRT

The strongest argument for KRT centers on Altman Z-Score, Return on Equity. Revenue growth of 12.9% demonstrates continued momentum.

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 : KRT

The primary concerns for KRT are Market Cap, Profit Margin, Piotroski F-Score.

Key Dynamics to Monitor

HD carries more volatility with a beta of 1.00 — expect wider price swings.

KRT is growing revenue faster at 12.9% — 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.

Karat Packaging Inc

CONSUMER CYCLICAL · PACKAGING & CONTAINERS · USA

Karat Packaging Inc. manufactures and distributes single-use disposable products in plastic, paper, biopolymers, and other compostable forms that are primarily used in restaurants and food service areas. The company is headquartered in Chino, California.

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