The Home Depot Inc (HD)vsMorgan Stanley (MS)
HD
The Home Depot Inc
$332.51
+0.48%
CONSUMER CYCLICAL · Cap: $319.31B
MS
Morgan Stanley
$165.65
-0.13%
FINANCIAL SERVICES · Cap: $263.03B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 134% more annual revenue ($164.68B vs $70.30B). MS leads profitability with a 24.0% profit margin vs 8.6%. MS appears more attractively valued with a PEG of 1.83. MS earns a higher WallStSmart Score of 76/100 (B+).
HD
Hold50
out of 100
Grade: D+
MS
Strong Buy76
out of 100
Grade: B+
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
+59.3%
Fair Value
$407.18
Current Price
$165.65
$241.53 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
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Keeps 24 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 20.7% YoY
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
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : MS
The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.0% and operating margin at 38.6%. Revenue growth of 11.0% demonstrates continued momentum.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : MS
The primary concerns for MS are PEG Ratio, Piotroski F-Score, Free Cash Flow.
Key Dynamics to Monitor
HD profiles as a value stock while MS is a mature play — different risk/reward profiles.
MS carries more volatility with a beta of 1.21 — expect wider price swings.
MS is growing revenue faster at 11.0% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
MS scores higher overall (76/100 vs 50/100), backed by strong 24.0% margins and 11.0% revenue growth. Both earn "Strong 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.
Morgan Stanley
FINANCIAL SERVICES · CAPITAL MARKETS · USA
Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.
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