The Home Depot Inc (HD)vsWayfair Inc (W)
HD
The Home Depot Inc
$308.74
+1.00%
CONSUMER CYCLICAL · Cap: $304.98B
W
Wayfair Inc
$98.57
+1.15%
CONSUMER CYCLICAL · Cap: $13.69B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 1211% more annual revenue ($169.18B vs $12.90B). HD leads profitability with a 8.4% profit margin vs -2.5%. 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
W
Avoid35
out of 100
Grade: F
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
+1.5%
Fair Value
$89.41
Current Price
$98.57
$9.16 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
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Trading at 18.5x book value
4.6% earnings growth
Weak financial health signals
ROE of 0.0% — below average capital efficiency
Operating margin of 3.0%
Expensive relative to growth rate
Earnings declined 55.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : W
The strongest argument for W centers on Debt/Equity.
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 : W
The primary concerns for W are Return on Equity, Operating Margin, PEG Ratio.
Key Dynamics to Monitor
HD profiles as a value stock while W is a turnaround play — different risk/reward profiles.
W carries more volatility with a beta of 3.00 — expect wider price swings.
W is growing revenue faster at 7.5% — sustainability is the question.
HD generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
HD scores higher overall (58/100 vs 35/100). Both earn "Buy" and "Avoid" 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.
Wayfair Inc
CONSUMER CYCLICAL · INTERNET RETAIL · USA
Wayfair Inc. is involved in the e-commerce business in the United States and internationally. The company is headquartered in Boston, Massachusetts.
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