The Home Depot Inc (HD)vsXponential Fitness Inc (XPOF)
HD
The Home Depot Inc
$348.34
+2.42%
CONSUMER CYCLICAL · Cap: $337.89B
XPOF
Xponential Fitness Inc
$6.68
+0.45%
CONSUMER CYCLICAL · Cap: $308.38M
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 55670% more annual revenue ($166.59B vs $298.71M). HD leads profitability with a 8.4% profit margin vs -12.6%. HD earns a higher WallStSmart Score of 54/100 (C-).
HD
Buy54
out of 100
Grade: C-
XPOF
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-61.3%
Fair Value
$213.57
Current Price
$348.34
$134.77 premium
Margin of Safety
+17.3%
Fair Value
$10.12
Current Price
$6.68
$3.44 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
Conservative balance sheet, low leverage
Strong operational efficiency at 24.7%
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 25.0x book value
Smaller company, higher risk/reward
ROE of -28.8% — below average capital efficiency
Revenue declined 21.0%
Earnings declined 81.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : XPOF
The strongest argument for XPOF centers on Debt/Equity, Operating Margin.
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 : XPOF
The primary concerns for XPOF are Market Cap, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
HD profiles as a value stock while XPOF is a turnaround play — different risk/reward profiles.
XPOF carries more volatility with a beta of 1.07 — 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.
Bottom Line
HD scores higher overall (54/100 vs 32/100). XPOF offers better value entry with a 17.3% margin of safety. 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.
Xponential Fitness Inc
CONSUMER CYCLICAL · LEISURE · USA
Xponential Fitness Inc. (XPOF) is a leading player in the boutique fitness franchise industry, featuring a diverse portfolio of established brands including Club Pilates, CycleBar, and StretchLab. Its community-oriented approach is designed to provide customized fitness experiences, effectively addressing the growing consumer appetite for health and wellness solutions. Xponential's strategic franchise model enhances scalability and positions the company well to leverage emerging market trends in the fitness sector. With a strong commitment to quality and innovation, Xponential Fitness presents attractive investment opportunities for institutional investors looking to tap into the evolving dynamics of the fitness landscape.
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