WallStSmart

The Home Depot Inc (HD)vsWilliams-Sonoma Inc (WSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 2014% more annual revenue ($166.59B vs $7.88B). WSM leads profitability with a 13.8% profit margin vs 8.4%. HD appears more attractively valued with a PEG of 1.86. WSM earns a higher WallStSmart Score of 54/100 (C-).

HD

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 7.5Value: 4.0Quality: 5.0
Piotroski: 2/9Altman Z: 3.59

WSM

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 8.5Value: 4.3Quality: 6.0
Piotroski: 2/9Altman Z: 3.24
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HDSignificantly Overvalued (-59.0%)

Margin of Safety

-59.0%

Fair Value

$212.07

Current Price

$310.78

$98.71 premium

UndervaluedFair: $212.07Overvalued

Intrinsic value data unavailable for WSM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HD4 strengths · Avg: 9.5/10
Market CapQuality
$336.21B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
101.0%10/10

Every $100 of equity generates 101 in profit

Altman Z-ScoreHealth
3.5910/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$5.19B8/10

Generating 5.2B in free cash flow

WSM2 strengths · Avg: 10.0/10
Return on EquityProfitability
58.2%10/10

Every $100 of equity generates 58 in profit

Altman Z-ScoreHealth
3.2410/10

Safe zone — low bankruptcy risk

Areas to Watch

HD4 concerns · Avg: 3.3/10
PEG RatioValuation
1.864/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

WSM4 concerns · Avg: 4.0/10
P/E RatioValuation
25.1x4/10

Moderate valuation

Price/BookValuation
11.7x4/10

Trading at 11.7x book value

Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

EPS GrowthGrowth
4.3%4/10

4.3% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : HD

The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.

Bull Case : WSM

The strongest argument for WSM centers on Return on Equity, Altman Z-Score.

Bear Case : HD

The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.

Bear Case : WSM

The primary concerns for WSM are P/E Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

WSM carries more volatility with a beta of 1.51 — expect wider price swings.

HD is growing revenue faster at 4.8% — sustainability is the question.

HD generates stronger free cash flow (5.2B), providing more financial flexibility.

Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

WSM scores higher overall (54/100 vs 51/100). 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.

Williams-Sonoma Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Williams-Sonoma, Inc. is an omnichannel specialty retailer of various home products. The company is headquartered in San Francisco, California.

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