The Home Depot Inc (HD)vsFerrari NV (RACE)
HD
The Home Depot Inc
$338.94
-0.83%
CONSUMER CYCLICAL · Cap: $337.29B
RACE
Ferrari NV
$412.29
+0.62%
CONSUMER CYCLICAL · Cap: $70.80B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 2166% more annual revenue ($166.59B vs $7.35B). RACE leads profitability with a 22.3% profit margin vs 8.4%. HD appears more attractively valued with a PEG of 1.87. RACE earns a higher WallStSmart Score of 58/100 (C).
HD
Buy54
out of 100
Grade: C-
RACE
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-64.0%
Fair Value
$213.91
Current Price
$338.94
$125.03 premium
Margin of Safety
-64.1%
Fair Value
$249.97
Current Price
$412.29
$162.32 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
Every $100 of equity generates 45 in profit
Strong operational efficiency at 31.1%
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 24.3x book value
Premium valuation, high expectations priced in
Trading at 17.2x book value
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : RACE
The strongest argument for RACE centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 22.3% and operating margin at 31.1%.
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 : RACE
The primary concerns for RACE are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
HD profiles as a value stock while RACE is a mature play — different risk/reward profiles.
HD carries more volatility with a beta of 0.96 — expect wider price swings.
RACE is growing revenue faster at 8.4% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Bottom Line
RACE scores higher overall (58/100 vs 54/100), backed by strong 22.3% margins. 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.
Ferrari NV
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Ferrari NV designs, designs, produces and sells high performance sports cars. The company is headquartered in Maranello, Italy.
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