WallStSmart

The Home Depot Inc (HD)vsPenn National Gaming Inc (PENN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 2257% more annual revenue ($166.59B vs $7.07B). HD leads profitability with a 8.4% profit margin vs -13.5%. PENN appears more attractively valued with a PEG of 1.01. PENN earns a higher WallStSmart Score of 59/100 (C).

HD

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 7.5Value: 4.0Quality: 5.0
Piotroski: 2/9Altman Z: 3.59

PENN

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 3.5Value: 7.0Quality: 2.5
Piotroski: 3/9Altman Z: 0.31
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HDSignificantly Overvalued (-64.2%)

Margin of Safety

-64.2%

Fair Value

$212.44

Current Price

$348.86

$136.42 premium

UndervaluedFair: $212.44Overvalued
PENNUndervalued (+79.5%)

Margin of Safety

+79.5%

Fair Value

$65.22

Current Price

$21.09

$44.13 discount

UndervaluedFair: $65.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HD4 strengths · Avg: 9.5/10
Market CapQuality
$347.85B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
101.0%10/10

Every $100 of equity generates 101 in profit

Altman Z-ScoreHealth
3.5910/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$5.19B8/10

Generating 5.2B in free cash flow

PENN2 strengths · Avg: 10.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
208.9%10/10

Earnings expanding 208.9% YoY

Areas to Watch

HD4 concerns · Avg: 3.3/10
PEG RatioValuation
1.974/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Price/BookValuation
25.1x2/10

Trading at 25.1x book value

PENN4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-40.1%2/10

ROE of -40.1% — below average capital efficiency

Altman Z-ScoreHealth
0.312/10

Distress zone — elevated risk

Profit MarginProfitability
-13.5%1/10

Currently unprofitable

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 : PENN

The strongest argument for PENN centers on Price/Book, EPS Growth. PEG of 1.01 suggests the stock is reasonably priced for its growth.

Bear Case : HD

The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.

Bear Case : PENN

The primary concerns for PENN are Piotroski F-Score, Return on Equity, Altman Z-Score. Debt-to-equity of 4.52 is elevated, increasing financial risk.

Key Dynamics to Monitor

HD profiles as a value stock while PENN is a turnaround play — different risk/reward profiles.

PENN carries more volatility with a beta of 1.45 — expect wider price swings.

PENN is growing revenue faster at 6.4% — sustainability is the question.

HD generates stronger free cash flow (5.2B), providing more financial flexibility.

Bottom Line

PENN scores higher overall (59/100 vs 51/100). Both earn "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.

Penn National Gaming Inc

CONSUMER CYCLICAL · RESORTS & CASINOS · USA

Penn National Gaming, Inc. is an American operator of casinos and racetracks, based in Wyomissing, Pennsylvania.

Want to dig deeper into these stocks?