Capital One Financial Corporation (COF)vsThe Home Depot Inc (HD)
COF
Capital One Financial Corporation
$189.48
-1.61%
FINANCIAL SERVICES · Cap: $122.14B
HD
The Home Depot Inc
$317.45
-1.61%
CONSUMER CYCLICAL · Cap: $321.36B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 354% more annual revenue ($164.68B vs $36.31B). COF leads profitability with a 8.9% profit margin vs 8.6%. COF appears more attractively valued with a PEG of 0.20. COF earns a higher WallStSmart Score of 65/100 (C+).
COF
Buy65
out of 100
Grade: C+
HD
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for COF.
Margin of Safety
-32.6%
Fair Value
$243.24
Current Price
$317.45
$74.21 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Revenue surging 46.3% year-over-year
Large-cap with strong market position
Strong operational efficiency at 28.6%
Generating 5.5B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 146 in profit
Safe zone — low bankruptcy risk
Generating 2.3B in free cash flow
Areas to Watch
ROE of 3.3% — below average capital efficiency
Premium valuation, high expectations priced in
Earnings declined 4.3%
Weak financial health signals
Expensive relative to growth rate
Trading at 24.7x book value
Revenue declined 3.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : COF
The strongest argument for COF centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 46.3% demonstrates continued momentum. PEG of 0.20 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 : COF
The primary concerns for COF are Return on Equity, P/E Ratio, EPS Growth. A P/E of 59.3x leaves little room for execution misses.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Key Dynamics to Monitor
COF profiles as a hypergrowth stock while HD is a value play — different risk/reward profiles.
COF carries more volatility with a beta of 1.05 — expect wider price swings.
COF is growing revenue faster at 46.3% — sustainability is the question.
COF generates stronger free cash flow (5.5B), providing more financial flexibility.
Bottom Line
COF scores higher overall (65/100 vs 50/100) and 46.3% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Capital One Financial Corporation
FINANCIAL SERVICES · CREDIT SERVICES · USA
Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States.
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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