Dollar Tree Inc (DLTR)vsThe Home Depot Inc (HD)
DLTR
Dollar Tree Inc
$106.64
+0.10%
CONSUMER DEFENSIVE · Cap: $21.18B
HD
The Home Depot Inc
$332.51
-1.23%
CONSUMER CYCLICAL · Cap: $331.18B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 748% more annual revenue ($164.68B vs $19.41B). HD leads profitability with a 8.6% profit margin vs 6.6%. DLTR appears more attractively valued with a PEG of 1.12. DLTR earns a higher WallStSmart Score of 63/100 (C+).
DLTR
Buy63
out of 100
Grade: C+
HD
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+11.4%
Fair Value
$141.13
Current Price
$106.64
$34.49 discount
Margin of Safety
-239.4%
Fair Value
$96.76
Current Price
$332.51
$235.75 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 32 in profit
Attractively priced relative to earnings
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
Grey zone — moderate risk
6.6% margin — thin
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Trading at 25.9x book value
Revenue declined 3.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : DLTR
The strongest argument for DLTR centers on Return on Equity, P/E Ratio. PEG of 1.12 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 : DLTR
The primary concerns for DLTR are Altman Z-Score, Profit Margin, Debt/Equity. Debt-to-equity of 1.51 is elevated, increasing financial risk.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.04 — expect wider price swings.
DLTR is growing revenue faster at 9.0% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DLTR scores higher overall (63/100 vs 45/100). 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.
Dollar Tree Inc
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Dollar Tree is an American chain of discount variety stores that sells items for $1 or less, headquartered in Chesapeake, Virginia.
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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