Best Buy Co. Inc (BBY)vsThe Home Depot Inc (HD)
BBY
Best Buy Co. Inc
$71.54
+0.77%
CONSUMER CYCLICAL · Cap: $16.55B
HD
The Home Depot Inc
$310.78
+0.73%
CONSUMER CYCLICAL · Cap: $310.62B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 298% more annual revenue ($166.59B vs $41.86B). HD leads profitability with a 8.4% profit margin vs 2.7%. BBY appears more attractively valued with a PEG of 1.50. BBY earns a higher WallStSmart Score of 62/100 (C+).
BBY
Buy62
out of 100
Grade: C+
HD
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-67.0%
Fair Value
$40.17
Current Price
$71.54
$31.37 premium
Margin of Safety
-46.5%
Fair Value
$212.07
Current Price
$310.78
$98.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 37 in profit
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Earnings expanding 37.9% YoY
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
Areas to Watch
1.9% revenue growth
2.7% margin — thin
Operating margin of 4.0%
Elevated debt levels
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 22.3x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : BBY
The strongest argument for BBY centers on Return on Equity, Altman Z-Score, P/E Ratio.
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 Revenue Growth, Profit Margin, Operating Margin. Thin 2.7% margins leave little buffer for downturns.
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.
Key Dynamics to Monitor
BBY carries more volatility with a beta of 1.33 — 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 SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BBY scores higher overall (62/100 vs 54/100). 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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