The Home Depot Inc (HD)vsAltria Group (MO)
HD
The Home Depot Inc
$332.51
+0.48%
CONSUMER CYCLICAL · Cap: $319.31B
MO
Altria Group
$63.78
-0.84%
CONSUMER DEFENSIVE · Cap: $107.97B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 718% more annual revenue ($164.68B vs $20.14B). MO leads profitability with a 34.5% profit margin vs 8.6%. MO appears more attractively valued with a PEG of 1.65. HD earns a higher WallStSmart Score of 50/100 (D+).
HD
Hold50
out of 100
Grade: D+
MO
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-241.7%
Fair Value
$96.83
Current Price
$332.51
$235.68 premium
Margin of Safety
-135.3%
Fair Value
$28.02
Current Price
$63.78
$35.76 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
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 57.1%
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Generating 3.2B in free cash flow
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 25.9x book value
Revenue declined 3.8%
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Revenue declined 0.5%
Earnings declined 62.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : MO
The strongest argument for MO centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 34.5% and operating margin at 57.1%.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : MO
The primary concerns for MO are PEG Ratio, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
HD profiles as a value stock while MO is a declining play — different risk/reward profiles.
HD carries more volatility with a beta of 1.04 — expect wider price swings.
MO is growing revenue faster at -0.5% — sustainability is the question.
MO generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
HD scores higher overall (50/100 vs 47/100). Both earn "Hold" 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.
Altria Group
CONSUMER DEFENSIVE · TOBACCO · USA
Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in unincorporated Henrico County, Virginia, just outside the city of Richmond.
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