The Home Depot Inc (HD)vsPenske Automotive Group Inc (PAG)
HD
The Home Depot Inc
$339.50
+0.19%
CONSUMER CYCLICAL · Cap: $338.15B
PAG
Penske Automotive Group Inc
$159.47
-0.77%
CONSUMER CYCLICAL · Cap: $10.71B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 418% more annual revenue ($164.68B vs $31.81B). HD leads profitability with a 8.6% profit margin vs 2.9%. PAG appears more attractively valued with a PEG of 1.81. PAG earns a higher WallStSmart Score of 53/100 (C-).
HD
Hold45
out of 100
Grade: D+
PAG
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-40.2%
Fair Value
$242.18
Current Price
$339.50
$97.32 premium
Margin of Safety
-80.3%
Fair Value
$96.08
Current Price
$159.47
$63.39 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
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 26.4x book value
Revenue declined 3.8%
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.4%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : PAG
The primary concerns for PAG are PEG Ratio, Profit Margin, Operating Margin. Debt-to-equity of 1.56 is elevated, increasing financial risk. Thin 2.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.08 — expect wider price swings.
PAG is growing revenue faster at -3.1% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PAG scores higher overall (53/100 vs 45/100). 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.
Penske Automotive Group Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.
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