WallStSmart

The Home Depot Inc (HD)vsMurphy USA Inc (MUSA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 786% more annual revenue ($169.18B vs $19.09B). HD leads profitability with a 8.4% profit margin vs 3.2%. MUSA appears more attractively valued with a PEG of 1.51. MUSA earns a higher WallStSmart Score of 67/100 (B-).

HD

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 4.0Quality: 5.0
Piotroski: 2/9Altman Z: 3.59

MUSA

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 6.5Value: 5.7Quality: 4.5
Piotroski: 3/9Altman Z: 5.89
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HDSignificantly Overvalued (-41.8%)

Margin of Safety

-41.8%

Fair Value

$217.78

Current Price

$308.74

$90.96 premium

UndervaluedFair: $217.78Overvalued

Intrinsic value data unavailable for MUSA.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HD4 strengths · Avg: 9.5/10
Market CapQuality
$304.98B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
85.6%10/10

Every $100 of equity generates 86 in profit

Altman Z-ScoreHealth
3.5910/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$4.51B8/10

Generating 4.5B in free cash flow

MUSA5 strengths · Avg: 9.6/10
Return on EquityProfitability
88.8%10/10

Every $100 of equity generates 89 in profit

Revenue GrowthGrowth
40.8%10/10

Revenue surging 40.8% year-over-year

EPS GrowthGrowth
53.1%10/10

Earnings expanding 53.1% YoY

Altman Z-ScoreHealth
5.8910/10

Safe zone — low bankruptcy risk

P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

Areas to Watch

HD4 concerns · Avg: 3.8/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Price/BookValuation
18.5x4/10

Trading at 18.5x book value

EPS GrowthGrowth
4.6%4/10

4.6% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

MUSA4 concerns · Avg: 3.5/10
PEG RatioValuation
1.514/10

Expensive relative to growth rate

Price/BookValuation
12.3x4/10

Trading at 12.3x book value

Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

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 : MUSA

The strongest argument for MUSA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 40.8% demonstrates continued momentum.

Bear Case : HD

The primary concerns for HD are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 3.77 is elevated, increasing financial risk.

Bear Case : MUSA

The primary concerns for MUSA are PEG Ratio, Price/Book, Profit Margin. Debt-to-equity of 3.49 is elevated, increasing financial risk. Thin 3.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

HD profiles as a value stock while MUSA is a hypergrowth play — different risk/reward profiles.

HD carries more volatility with a beta of 0.95 — expect wider price swings.

MUSA is growing revenue faster at 40.8% — sustainability is the question.

HD generates stronger free cash flow (4.5B), providing more financial flexibility.

Bottom Line

MUSA scores higher overall (67/100 vs 58/100) and 40.8% revenue growth. Both earn "Strong Buy" and "Buy" 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.

Murphy USA Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Murphy USA Inc. is engaged in the marketing of retail motor fuel products and convenience merchandise. The company is headquartered in El Dorado, Arkansas.

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