The Home Depot Inc (HD)vsPepsiCo Inc (PEP)
HD
The Home Depot Inc
$317.45
-1.61%
CONSUMER CYCLICAL · Cap: $321.36B
PEP
PepsiCo Inc
$154.62
-1.07%
CONSUMER DEFENSIVE · Cap: $213.64B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 73% more annual revenue ($164.68B vs $95.45B). PEP leads profitability with a 9.2% profit margin vs 8.6%. PEP appears more attractively valued with a PEG of 1.68. PEP earns a higher WallStSmart Score of 63/100 (C+).
HD
Hold50
out of 100
Grade: D+
PEP
Buy63
out of 100
Grade: C+
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
-1.0%
Fair Value
$154.81
Current Price
$154.62
$0.19 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
Every $100 of equity generates 44 in profit
Earnings expanding 27.8% YoY
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 24.7x book value
Revenue declined 3.8%
Expensive relative to growth rate
Trading at 9.9x book value
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 : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.00 — expect wider price swings.
PEP is growing revenue faster at 8.5% — 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
PEP scores higher overall (63/100 vs 50/100). 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.
PepsiCo Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.
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