The Home Depot Inc (HD)vsRalph Lauren Corp Class A (RL)
HD
The Home Depot Inc
$343.47
-1.85%
CONSUMER CYCLICAL · Cap: $328.44B
RL
Ralph Lauren Corp Class A
$376.56
-1.37%
CONSUMER CYCLICAL · Cap: $23.21B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 1925% more annual revenue ($169.18B vs $8.36B). RL leads profitability with a 11.8% profit margin vs 8.4%. HD appears more attractively valued with a PEG of 1.74. RL earns a higher WallStSmart Score of 64/100 (C+).
HD
Buy58
out of 100
Grade: C
RL
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.0%
Fair Value
$218.75
Current Price
$343.47
$124.72 premium
Margin of Safety
-71.6%
Fair Value
$209.48
Current Price
$376.56
$167.08 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 86 in profit
Safe zone — low bankruptcy risk
Generating 4.5B in free cash flow
Every $100 of equity generates 39 in profit
Safe zone — low bankruptcy risk
Earnings expanding 21.6% YoY
Areas to Watch
Expensive relative to growth rate
4.6% earnings growth
Weak financial health signals
Trading at 20.6x book value
Expensive relative to growth rate
Trading at 8.2x book value
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 : RL
The strongest argument for RL centers on Return on Equity, Altman Z-Score, EPS Growth. Revenue growth of 14.0% demonstrates continued momentum.
Bear Case : HD
The primary concerns for HD are PEG Ratio, EPS Growth, Piotroski F-Score. Debt-to-equity of 3.77 is elevated, increasing financial risk.
Bear Case : RL
The primary concerns for RL are PEG Ratio, Price/Book, Debt/Equity.
Key Dynamics to Monitor
RL carries more volatility with a beta of 1.35 — expect wider price swings.
RL is growing revenue faster at 14.0% — sustainability is the question.
HD generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RL scores higher overall (64/100 vs 58/100) and 14.0% revenue growth. 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.
Ralph Lauren Corp Class A
CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA
Ralph Lauren Corporation is an American fashion company producing products ranging from the mid-range to the luxury segments. They are known for the clothing, marketing and distribution of products in four categories: apparel, home, accessories, and fragrances.
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