The Home Depot Inc (HD)vsLennar Corporation (LEN)
HD
The Home Depot Inc
$310.78
+2.08%
CONSUMER CYCLICAL · Cap: $336.21B
LEN
Lennar Corporation
$90.49
-1.51%
CONSUMER CYCLICAL · Cap: $22.24B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 409% more annual revenue ($166.59B vs $32.74B). HD leads profitability with a 8.4% profit margin vs 4.9%. HD appears more attractively valued with a PEG of 1.86. HD earns a higher WallStSmart Score of 51/100 (C-).
HD
Buy51
out of 100
Grade: C-
LEN
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.4%
Fair Value
$212.44
Current Price
$310.78
$98.34 premium
Margin of Safety
+11.0%
Fair Value
$136.01
Current Price
$90.49
$45.52 discount
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
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 22.3x book value
ROE of 7.5% — below average capital efficiency
4.9% margin — thin
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 : LEN
The strongest argument for LEN centers on Price/Book, Altman Z-Score, Debt/Equity.
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 : LEN
The primary concerns for LEN are Return on Equity, Profit Margin, Piotroski F-Score. Thin 4.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
LEN carries more volatility with a beta of 1.40 — 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 (51/100 vs 46/100). 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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