Callaway Golf Company (CALY)vsThe Home Depot Inc (HD)
CALY
Callaway Golf Company
$14.80
-1.33%
CONSUMER CYCLICAL · Cap: $2.70B
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 7766% more annual revenue ($166.59B vs $2.12B). HD leads profitability with a 8.4% profit margin vs -15.0%. CALY appears more attractively valued with a PEG of 0.72. CALY earns a higher WallStSmart Score of 66/100 (B-).
CALY
Strong Buy66
out of 100
Grade: B-
HD
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+16.2%
Fair Value
$17.97
Current Price
$14.80
$3.17 discount
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
Reasonable price relative to book value
Earnings expanding 2403.0% YoY
Growing faster than its price suggests
Strong operational efficiency at 20.1%
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
ROE of 2.2% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
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 : CALY
The strongest argument for CALY centers on Price/Book, EPS Growth, PEG Ratio. PEG of 0.72 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 : CALY
The primary concerns for CALY are Return on Equity, Piotroski F-Score, P/E Ratio. A P/E of 57.7x leaves little room for execution misses.
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
CALY profiles as a turnaround stock while HD is a value play — different risk/reward profiles.
HD carries more volatility with a beta of 1.00 — expect wider price swings.
CALY is growing revenue faster at 9.2% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Bottom Line
CALY scores higher overall (66/100 vs 54/100). 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.
Callaway Golf Company
CONSUMER CYCLICAL · LEISURE · USA
Callaway Golf Company designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories in the United States, Europe, Asia, and Internationally. The company is headquartered in Carlsbad, 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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