Allison Transmission Holdings Inc (ALSN)vsThe Home Depot Inc (HD)
ALSN
Allison Transmission Holdings Inc
$126.94
-0.47%
CONSUMER CYCLICAL · Cap: $10.78B
HD
The Home Depot Inc
$308.74
+1.00%
CONSUMER CYCLICAL · Cap: $304.98B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 3743% more annual revenue ($169.18B vs $4.40B). ALSN leads profitability with a 12.0% profit margin vs 8.4%. ALSN appears more attractively valued with a PEG of 0.60. ALSN earns a higher WallStSmart Score of 66/100 (B-).
ALSN
Strong Buy66
out of 100
Grade: B-
HD
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-47.0%
Fair Value
$79.22
Current Price
$126.94
$47.72 premium
Margin of Safety
-41.8%
Fair Value
$217.78
Current Price
$308.74
$90.96 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 92.4% year-over-year
Every $100 of equity generates 29 in profit
Growing faster than its price suggests
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
Earnings declined 6.1%
Elevated debt levels
Expensive relative to growth rate
Trading at 18.5x book value
4.6% earnings growth
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ALSN
The strongest argument for ALSN centers on Revenue Growth, Return on Equity, PEG Ratio. Revenue growth of 92.4% demonstrates continued momentum. PEG of 0.60 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, EPS Growth, Debt/Equity. Debt-to-equity of 2.08 is elevated, increasing financial risk.
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.
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 0.97 — expect wider price swings.
ALSN is growing revenue faster at 92.4% — sustainability is the question.
HD generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
ALSN scores higher overall (66/100 vs 58/100) and 92.4% revenue growth. Both earn "Strong 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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