The Home Depot Inc (HD)vsThe Wendy’s Co (WEN)
HD
The Home Depot Inc
$348.28
-0.87%
CONSUMER CYCLICAL · Cap: $328.44B
WEN
The Wendy’s Co
$8.18
-1.92%
CONSUMER CYCLICAL · Cap: $1.59B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 7586% more annual revenue ($169.18B vs $2.20B). HD leads profitability with a 8.4% profit margin vs 4.4%. WEN appears more attractively valued with a PEG of 1.54. HD earns a higher WallStSmart Score of 58/100 (C).
HD
Buy58
out of 100
Grade: C
WEN
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.0%
Fair Value
$218.75
Current Price
$348.27
$129.52 premium
Margin of Safety
+36.7%
Fair Value
$12.45
Current Price
$8.18
$4.27 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 121 in profit
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
4.6% earnings growth
Weak financial health signals
Trading at 20.9x book value
Expensive relative to growth rate
Trading at 12.6x book value
Smaller company, higher risk/reward
4.4% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : WEN
The strongest argument for WEN centers on Return on Equity, P/E Ratio.
Bear Case : HD
The primary concerns for HD are PEG Ratio, EPS Growth, Piotroski F-Score. Debt-to-equity of 3.77 is elevated, increasing financial risk.
Bear Case : WEN
The primary concerns for WEN are PEG Ratio, Price/Book, Market Cap. Debt-to-equity of 33.81 is elevated, increasing financial risk. Thin 4.4% margins leave little buffer for downturns.
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
HD scores higher overall (58/100 vs 48/100). WEN offers better value entry with a 36.7% margin of safety. 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.
The Wendy’s Co
CONSUMER CYCLICAL · RESTAURANTS · USA
The Wendy's Company, is a quick service restaurant business. The company is headquartered in Dublin, Ohio.
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