Best Buy Co. Inc (BBY)vsThe Home Depot Inc (HD)
BBY
Best Buy Co. Inc
$90.80
+3.08%
CONSUMER CYCLICAL · Cap: $18.73B
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 301% more annual revenue ($169.18B vs $42.20B). HD leads profitability with a 8.4% profit margin vs 3.0%. BBY appears more attractively valued with a PEG of 1.72. BBY earns a higher WallStSmart Score of 60/100 (C+).
BBY
Buy60
out of 100
Grade: C+
HD
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.8%
Fair Value
$41.72
Current Price
$90.80
$49.08 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
Every $100 of equity generates 40 in profit
Earnings expanding 70.1% YoY
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
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
Expensive relative to growth rate
3.6% revenue growth
3.0% margin — thin
Operating margin of 3.9%
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 : BBY
The strongest argument for BBY centers on Return on Equity, EPS Growth, Altman Z-Score.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bear Case : BBY
The primary concerns for BBY are PEG Ratio, Revenue Growth, Profit Margin. Thin 3.0% margins leave little buffer for downturns.
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
BBY carries more volatility with a beta of 1.30 — 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 SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BBY scores higher overall (60/100 vs 58/100). 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.
Best Buy Co. Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.
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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