The Home Depot Inc (HD)vsShake Shack Inc (SHAK)
HD
The Home Depot Inc
$310.78
+0.73%
CONSUMER CYCLICAL · Cap: $310.62B
SHAK
Shake Shack Inc
$52.34
-1.91%
CONSUMER CYCLICAL · Cap: $2.49B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 11072% more annual revenue ($166.59B vs $1.49B). HD leads profitability with a 8.4% profit margin vs 2.8%. HD appears more attractively valued with a PEG of 1.76. HD earns a higher WallStSmart Score of 54/100 (C-).
HD
Buy54
out of 100
Grade: C-
SHAK
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-46.5%
Fair Value
$212.07
Current Price
$310.78
$98.71 premium
Margin of Safety
+29.3%
Fair Value
$137.22
Current Price
$52.34
$84.88 discount
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
Earnings expanding 28.7% YoY
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 22.3x book value
ROE of 7.8% — below average capital efficiency
2.8% margin — thin
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : SHAK
The strongest argument for SHAK centers on EPS Growth. Revenue growth of 14.3% demonstrates continued momentum.
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 : SHAK
The primary concerns for SHAK are Return on Equity, Profit Margin, Debt/Equity. A P/E of 59.4x leaves little room for execution misses. Debt-to-equity of 1.75 is elevated, increasing financial risk.
Key Dynamics to Monitor
SHAK carries more volatility with a beta of 1.62 — expect wider price swings.
SHAK is growing revenue faster at 14.3% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (54/100 vs 51/100). SHAK offers better value entry with a 29.3% margin of safety. 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.
Shake Shack Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.
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