The Home Depot Inc (HD)vsTexas Roadhouse Inc (TXRH)
HD
The Home Depot Inc
$308.74
+1.00%
CONSUMER CYCLICAL · Cap: $304.98B
TXRH
Texas Roadhouse Inc
$181.22
+0.09%
CONSUMER CYCLICAL · Cap: $12.00B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 2615% more annual revenue ($169.18B vs $6.23B). HD leads profitability with a 8.4% profit margin vs 6.6%. HD appears more attractively valued with a PEG of 1.73. HD earns a higher WallStSmart Score of 58/100 (C).
HD
Buy58
out of 100
Grade: C
TXRH
Buy55
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
-48.7%
Fair Value
$123.35
Current Price
$181.22
$57.87 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 27 in profit
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
6.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : TXRH
The strongest argument for TXRH centers on Return on Equity. Revenue growth of 11.1% 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 : TXRH
The primary concerns for TXRH are PEG Ratio, P/E Ratio, Profit Margin.
Key Dynamics to Monitor
HD carries more volatility with a beta of 0.95 — expect wider price swings.
TXRH is growing revenue faster at 11.1% — 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
HD scores higher overall (58/100 vs 55/100). 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.
Texas Roadhouse Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Texas Roadhouse, Inc., operates casual restaurants in the United States and internationally. The company is headquartered in Louisville, Kentucky.
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