The Home Depot Inc (HD)vsInterContinental Hotels Group PLC ADR (IHG)
HD
The Home Depot Inc
$305.45
+2.74%
CONSUMER CYCLICAL · Cap: $304.98B
IHG
InterContinental Hotels Group PLC ADR
$154.60
+0.99%
CONSUMER CYCLICAL · Cap: $22.40B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 3075% more annual revenue ($169.18B vs $5.33B). IHG leads profitability with a 13.4% profit margin vs 8.4%. IHG appears more attractively valued with a PEG of 1.24. HD earns a higher WallStSmart Score of 58/100 (C).
HD
Buy58
out of 100
Grade: C
IHG
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.8%
Fair Value
$217.98
Current Price
$305.44
$87.47 premium
Margin of Safety
-72.0%
Fair Value
$84.71
Current Price
$154.60
$69.89 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Conservative balance sheet, low leverage
Strong operational efficiency at 25.1%
Areas to Watch
Expensive relative to growth rate
Trading at 18.3x book value
4.6% earnings growth
Weak financial health signals
Premium valuation, high expectations priced in
Distress zone — elevated risk
ROE of 0.0% — below average capital efficiency
Earnings declined 5.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : IHG
The strongest argument for IHG centers on Debt/Equity, Operating Margin. PEG of 1.24 suggests the stock is reasonably priced for its growth.
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.
Bear Case : IHG
The primary concerns for IHG are P/E Ratio, Altman Z-Score, Return on Equity.
Key Dynamics to Monitor
IHG carries more volatility with a beta of 1.02 — expect wider price swings.
HD is growing revenue faster at 5.7% — sustainability is the question.
HD generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (58/100 vs 43/100). 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.
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.
InterContinental Hotels Group PLC ADR
CONSUMER CYCLICAL · LODGING · USA
InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company is headquartered in Denham, the United Kingdom.
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