WallStSmart

The Home Depot Inc (HD)vsMacy’s Inc (M)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 625% more annual revenue ($164.68B vs $22.71B). HD leads profitability with a 8.6% profit margin vs 2.1%. M appears more attractively valued with a PEG of 1.82. M earns a higher WallStSmart Score of 51/100 (C-).

HD

Hold

45

out of 100

Grade: D+

Growth: 2.7Profit: 7.5Value: 4.7Quality: 5.8
Piotroski: 2/9Altman Z: 3.82

M

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 6.5Value: 7.3Quality: 5.8
Piotroski: 4/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HDSignificantly Overvalued (-238.9%)

Margin of Safety

-238.9%

Fair Value

$96.83

Current Price

$320.75

$223.92 premium

UndervaluedFair: $96.83Overvalued
MSignificantly Overvalued (-88.0%)

Margin of Safety

-88.0%

Fair Value

$11.56

Current Price

$17.87

$6.31 premium

UndervaluedFair: $11.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HD4 strengths · Avg: 9.5/10
Market CapQuality
$339.90B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
145.5%10/10

Every $100 of equity generates 146 in profit

Altman Z-ScoreHealth
3.8210/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$2.29B8/10

Generating 2.3B in free cash flow

M5 strengths · Avg: 9.2/10
P/E RatioValuation
9.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
77.0%10/10

Strong operational efficiency at 77.0%

Revenue GrowthGrowth
20.0%8/10

Revenue surging 20.0% year-over-year

Free Cash FlowQuality
$1.06B8/10

Generating 1.1B in free cash flow

Areas to Watch

HD4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.122/10

Expensive relative to growth rate

Price/BookValuation
24.9x2/10

Trading at 24.9x book value

Revenue GrowthGrowth
-3.8%2/10

Revenue declined 3.8%

M3 concerns · Avg: 3.0/10
PEG RatioValuation
1.824/10

Expensive relative to growth rate

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

EPS GrowthGrowth
-60.0%2/10

Earnings declined 60.0%

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 : M

The strongest argument for M centers on P/E Ratio, Price/Book, Operating Margin. Revenue growth of 20.0% demonstrates continued momentum.

Bear Case : HD

The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.

Bear Case : M

The primary concerns for M are PEG Ratio, Profit Margin, EPS Growth. Thin 2.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

HD profiles as a value stock while M is a growth play — different risk/reward profiles.

M carries more volatility with a beta of 1.52 — expect wider price swings.

M is growing revenue faster at 20.0% — sustainability is the question.

HD generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

M scores higher overall (51/100 vs 45/100) and 20.0% revenue growth. 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.

Macy’s Inc

CONSUMER CYCLICAL · DEPARTMENT STORES · USA

Macy's, Inc., an omnichannel retail organization, operates stores, websites, and mobile apps under the Macy's, Bloomingdale's and bluemercury brands. The company is headquartered in New York, New York.

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