Allison Transmission Holdings Inc (ALSN)vsThe Home Depot Inc (HD)
ALSN
Allison Transmission Holdings Inc
$125.65
-3.41%
CONSUMER CYCLICAL · Cap: $10.31B
HD
The Home Depot Inc
$348.28
-0.87%
CONSUMER CYCLICAL · Cap: $328.44B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 3127% more annual revenue ($169.18B vs $5.24B). ALSN leads profitability with a 11.1% profit margin vs 8.4%. ALSN appears more attractively valued with a PEG of 0.56. ALSN earns a higher WallStSmart Score of 83/100 (A-).
ALSN
Exceptional Buy83
out of 100
Grade: A-
HD
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.0%
Fair Value
$95.45
Current Price
$125.65
$30.20 premium
Margin of Safety
-57.0%
Fair Value
$218.75
Current Price
$348.27
$129.52 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 121.4% year-over-year
Every $100 of equity generates 29 in profit
Growing faster than its price suggests
Strong operational efficiency at 20.1%
Earnings expanding 41.1% YoY
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
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
Expensive relative to growth rate
4.6% earnings growth
Weak financial health signals
Trading at 20.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ALSN
The strongest argument for ALSN centers on Revenue Growth, Return on Equity, PEG Ratio. Revenue growth of 121.4% demonstrates continued momentum. PEG of 0.56 suggests the stock is reasonably priced for its growth.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bear Case : ALSN
The primary concerns for ALSN are Altman Z-Score, Debt/Equity. Debt-to-equity of 1.93 is elevated, increasing financial risk.
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.
Key Dynamics to Monitor
ALSN profiles as a growth stock while HD is a value play — different risk/reward profiles.
ALSN carries more volatility with a beta of 1.06 — expect wider price swings.
ALSN is growing revenue faster at 121.4% — sustainability is the question.
HD generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
ALSN scores higher overall (83/100 vs 58/100) and 121.4% revenue growth. Both earn "Exceptional 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.
Allison Transmission Holdings Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Allison Transmission Holdings, Inc. designs, manufactures and sells fully automatic commercial and defense transmissions for medium and heavy duty commercial vehicles, and medium and heavy duty US defense vehicles globally. The company is headquartered in Indianapolis, Indiana.
Visit Website →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.
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