The Home Depot Inc (HD)vsSherwin-Williams Co (SHW)
HD
The Home Depot Inc
$332.51
+0.48%
CONSUMER CYCLICAL · Cap: $319.31B
SHW
Sherwin-Williams Co
$321.95
+2.63%
BASIC MATERIALS · Cap: $77.79B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 599% more annual revenue ($164.68B vs $23.57B). SHW leads profitability with a 10.9% profit margin vs 8.6%. SHW appears more attractively valued with a PEG of 2.63. SHW earns a higher WallStSmart Score of 54/100 (C-).
HD
Hold50
out of 100
Grade: D+
SHW
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
-237.9%
Fair Value
$92.84
Current Price
$321.95
$229.11 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
Every $100 of equity generates 59 in profit
Large-cap with strong market position
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 25.9x book value
Revenue declined 3.8%
Premium valuation, high expectations priced in
Trading at 17.2x book value
1.4% earnings growth
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 : SHW
The strongest argument for SHW centers on Return on Equity, Market Cap.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : SHW
The primary concerns for SHW are P/E Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
SHW carries more volatility with a beta of 1.24 — expect wider price swings.
SHW is growing revenue faster at 5.6% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SHW scores higher overall (54/100 vs 50/100). 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.
Sherwin-Williams Co
BASIC MATERIALS · SPECIALTY CHEMICALS · USA
Sherwin Williams Company is a Cleveland, Ohio based company in the paint and coating manufacturing industry. The company primarily engages in the manufacture, distribution, and sale of paints, coatings, floorcoverings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America and Europe.
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