The Home Depot Inc (HD)vsRio Tinto ADR (RIO)
HD
The Home Depot Inc
$332.51
+0.48%
CONSUMER CYCLICAL · Cap: $319.31B
RIO
Rio Tinto ADR
$87.54
+0.89%
BASIC MATERIALS · Cap: $139.55B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 186% more annual revenue ($164.68B vs $57.64B). RIO leads profitability with a 17.3% profit margin vs 8.6%. HD appears more attractively valued with a PEG of 2.94. RIO earns a higher WallStSmart Score of 54/100 (C-).
HD
Hold50
out of 100
Grade: D+
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-241.7%
Fair Value
$96.83
Current Price
$332.51
$235.68 premium
Margin of Safety
-136.9%
Fair Value
$41.41
Current Price
$87.54
$46.13 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
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 25.3%
Generating 2.5B in free cash flow
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 25.9x book value
Revenue declined 3.8%
Expensive relative to growth rate
Earnings declined 5.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : RIO
The strongest argument for RIO centers on Market Cap, P/E Ratio, Price/Book. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : RIO
The primary concerns for RIO are PEG Ratio, EPS Growth.
Key Dynamics to Monitor
HD profiles as a value stock while RIO is a mature play — different risk/reward profiles.
HD carries more volatility with a beta of 1.04 — expect wider price swings.
RIO is growing revenue faster at 14.6% — sustainability is the question.
RIO generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
RIO scores higher overall (54/100 vs 50/100), backed by strong 17.3% margins and 14.6% revenue growth. 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.
Rio Tinto ADR
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
Rio Tinto Group is dedicated to the exploration, extraction and processing of mineral resources worldwide. The company is headquartered in London, the United Kingdom.
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