The Home Depot Inc (HD)vsLennar Corporation (LEN)
HD
The Home Depot Inc
$323.05
+2.42%
CONSUMER CYCLICAL · Cap: $322.59B
LEN
Lennar Corporation
$90.54
+5.03%
CONSUMER CYCLICAL · Cap: $21.79B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 396% more annual revenue ($164.68B vs $33.17B). HD leads profitability with a 8.6% profit margin vs 5.4%. LEN appears more attractively valued with a PEG of 0.56. LEN earns a higher WallStSmart Score of 57/100 (C).
HD
Hold50
out of 100
Grade: D+
LEN
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.7%
Fair Value
$243.24
Current Price
$323.05
$79.81 premium
Margin of Safety
+29.1%
Fair Value
$170.78
Current Price
$90.54
$80.24 discount
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
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 25.1x book value
Revenue declined 3.8%
5.4% margin — thin
Operating margin of 3.6%
Weak financial health signals
Revenue declined 13.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : LEN
The strongest argument for LEN centers on Price/Book, Altman Z-Score, Debt/Equity. PEG of 0.56 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 : LEN
The primary concerns for LEN are Profit Margin, Operating Margin, Piotroski F-Score.
Key Dynamics to Monitor
LEN carries more volatility with a beta of 1.49 — expect wider price swings.
HD is growing revenue faster at -3.8% — 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
LEN scores higher overall (57/100 vs 50/100). 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.
Lennar Corporation
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
Lennar Corporation is a home construction and real estate company based in Fontainebleau, Florida.
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