The Home Depot Inc (HD)vsMerck & Company Inc (MRK)
HD
The Home Depot Inc
$317.45
-1.61%
CONSUMER CYCLICAL · Cap: $321.36B
MRK
Merck & Company Inc
$111.38
-0.82%
HEALTHCARE · Cap: $277.36B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 150% more annual revenue ($164.68B vs $65.77B). MRK leads profitability with a 13.6% profit margin vs 8.6%. HD appears more attractively valued with a PEG of 2.88. MRK earns a higher WallStSmart Score of 50/100 (D+).
HD
Hold50
out of 100
Grade: D+
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.6%
Fair Value
$243.24
Current Price
$317.45
$74.21 premium
Margin of Safety
-14.9%
Fair Value
$97.76
Current Price
$111.38
$13.62 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
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 24.7x book value
Revenue declined 3.8%
Premium valuation, high expectations priced in
4.9% revenue growth
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 : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.00 — expect wider price swings.
MRK is growing revenue faster at 4.9% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (50/100 vs 50/100). 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.
Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
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