The Cheesecake Factory (CAKE)vsThe Home Depot Inc (HD)
CAKE
The Cheesecake Factory
$103.04
+3.59%
CONSUMER CYCLICAL · Cap: $5.16B
HD
The Home Depot Inc
$305.45
+2.74%
CONSUMER CYCLICAL · Cap: $304.98B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 4263% more annual revenue ($169.18B vs $3.88B). HD leads profitability with a 8.4% profit margin vs 4.6%. HD appears more attractively valued with a PEG of 1.73. HD earns a higher WallStSmart Score of 58/100 (C).
CAKE
Buy57
out of 100
Grade: C
HD
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+0.5%
Fair Value
$61.86
Current Price
$103.04
$41.18 discount
Margin of Safety
-38.8%
Fair Value
$217.98
Current Price
$305.44
$87.47 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 36 in profit
Earnings expanding 23.7% 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
Expensive relative to growth rate
Moderate valuation
Trading at 9.9x book value
Grey zone — moderate risk
Expensive relative to growth rate
Trading at 18.3x book value
4.6% earnings growth
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : CAKE
The strongest argument for CAKE centers on Return on Equity, EPS Growth.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bear Case : CAKE
The primary concerns for CAKE are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 4.01 is elevated, increasing financial risk. Thin 4.6% 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
CAKE carries more volatility with a beta of 1.01 — expect wider price swings.
CAKE is growing revenue faster at 7.7% — sustainability is the question.
HD generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (58/100 vs 57/100). 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.
The Cheesecake Factory
CONSUMER CYCLICAL · RESTAURANTS · USA
Cheesecake Factory Incorporated operates restaurants. The company is headquartered in Calabasas, California.
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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