The Home Depot Inc (HD)vsThe TJX Companies Inc (TJX)
HD
The Home Depot Inc
$290.74
-1.60%
CONSUMER CYCLICAL · Cap: $280.50B
TJX
The TJX Companies Inc
$138.76
+0.01%
CONSUMER CYCLICAL · Cap: $150.73B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 171% more annual revenue ($169.18B vs $62.36B). TJX leads profitability with a 9.7% profit margin vs 8.4%. HD appears more attractively valued with a PEG of 2.50. TJX earns a higher WallStSmart Score of 58/100 (C).
HD
Buy56
out of 100
Grade: C
TJX
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.0%
Fair Value
$218.15
Current Price
$290.74
$72.59 premium
Margin of Safety
+1.3%
Fair Value
$140.66
Current Price
$138.76
$1.90 discount
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 57 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 23.6% YoY
Generating 1.7B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 17.5x book value
4.6% earnings growth
Weak financial health signals
Trading at 14.7x book value
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 : TJX
The strongest argument for TJX centers on Return on Equity, Altman Z-Score, Market Cap.
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 : TJX
The primary concerns for TJX are Price/Book, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.00 — expect wider price swings.
HD is growing revenue faster at 5.7% — 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
TJX scores higher overall (58/100 vs 56/100). 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.
The TJX Companies Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts.
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