Carvana Co (CVNA)vsThe Home Depot Inc (HD)
CVNA
Carvana Co
$416.79
+3.96%
CONSUMER CYCLICAL · Cap: $91.99B
HD
The Home Depot Inc
$339.50
+0.19%
CONSUMER CYCLICAL · Cap: $338.15B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 710% more annual revenue ($164.68B vs $20.32B). HD leads profitability with a 8.6% profit margin vs 6.9%. HD trades at a lower P/E of 23.9x. CVNA earns a higher WallStSmart Score of 58/100 (C).
CVNA
Buy58
out of 100
Grade: C
HD
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-63.3%
Fair Value
$222.98
Current Price
$416.79
$193.81 premium
Margin of Safety
-40.2%
Fair Value
$242.18
Current Price
$339.50
$97.32 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 68 in profit
Revenue surging 58.0% year-over-year
Earnings expanding 947.0% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
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
Trading at 17.2x book value
6.9% margin — thin
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Trading at 26.4x book value
Revenue declined 3.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : CVNA
The strongest argument for CVNA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 58.0% demonstrates continued momentum.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bear Case : CVNA
The primary concerns for CVNA are Price/Book, Profit Margin, P/E Ratio. A P/E of 49.3x 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
CVNA profiles as a hypergrowth stock while HD is a value play — different risk/reward profiles.
CVNA carries more volatility with a beta of 3.61 — expect wider price swings.
CVNA is growing revenue faster at 58.0% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
CVNA scores higher overall (58/100 vs 45/100) and 58.0% 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.
Carvana Co
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Carvana Co., operates an e-commerce platform to buy and sell used cars in the United States. The company is headquartered in Tempe, Arizona.
Visit Website →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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