The Home Depot Inc (HD)vsRoss Stores Inc (ROST)
HD
The Home Depot Inc
$308.74
+1.00%
CONSUMER CYCLICAL · Cap: $304.98B
ROST
Ross Stores Inc
$230.74
+2.33%
CONSUMER CYCLICAL · Cap: $74.02B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 590% more annual revenue ($169.18B vs $24.51B). ROST leads profitability with a 10.8% profit margin vs 8.4%. HD appears more attractively valued with a PEG of 1.73. ROST earns a higher WallStSmart Score of 64/100 (C+).
HD
Buy58
out of 100
Grade: C
ROST
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-41.8%
Fair Value
$217.78
Current Price
$308.74
$90.96 premium
Margin of Safety
-4.8%
Fair Value
$183.73
Current Price
$230.74
$47.01 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
Earnings expanding 70.5% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Trading at 18.5x book value
4.6% earnings growth
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
Trading at 10.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : ROST
The strongest argument for ROST centers on Return on Equity, EPS Growth, Altman Z-Score. Revenue growth of 13.3% demonstrates continued momentum.
Bear Case : HD
The primary concerns for HD are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 3.77 is elevated, increasing financial risk.
Bear Case : ROST
The primary concerns for ROST are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
HD carries more volatility with a beta of 0.95 — expect wider price swings.
ROST is growing revenue faster at 13.3% — 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
ROST scores higher overall (64/100 vs 58/100) and 13.3% 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.
Ross Stores Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.
Visit Website →Compare with Other HOME IMPROVEMENT RETAIL Stocks
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