The Home Depot Inc (HD)vsLithia Motors Inc (LAD)
HD
The Home Depot Inc
$339.50
+0.19%
CONSUMER CYCLICAL · Cap: $338.15B
LAD
Lithia Motors Inc
$276.58
-1.18%
CONSUMER CYCLICAL · Cap: $6.54B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 338% more annual revenue ($164.68B vs $37.63B). HD leads profitability with a 8.6% profit margin vs 2.2%. LAD appears more attractively valued with a PEG of 0.54. LAD earns a higher WallStSmart Score of 55/100 (C).
HD
Hold45
out of 100
Grade: D+
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-40.2%
Fair Value
$242.18
Current Price
$339.50
$97.32 premium
Margin of Safety
-50.4%
Fair Value
$212.98
Current Price
$276.58
$63.60 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
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 26.4x book value
Revenue declined 3.8%
0.3% revenue growth
2.2% margin — thin
Operating margin of 3.9%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : LAD
The strongest argument for LAD centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.54 suggests the stock is reasonably priced for its growth.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Thin 2.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.22 — expect wider price swings.
LAD is growing revenue faster at 0.3% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LAD scores higher overall (55/100 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.
Lithia Motors Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Lithia Motors, Inc. is an automobile retailer in the United States. The company is headquartered in Medford, Oregon.
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