The Home Depot Inc (HD)vsInternational Paper (IP)
HD
The Home Depot Inc
$310.78
+2.08%
CONSUMER CYCLICAL · Cap: $336.21B
IP
International Paper
$33.61
-0.80%
CONSUMER CYCLICAL · Cap: $19.14B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 584% more annual revenue ($166.59B vs $24.34B). HD leads profitability with a 8.4% profit margin vs -13.8%. IP appears more attractively valued with a PEG of 1.58. HD earns a higher WallStSmart Score of 51/100 (C-).
HD
Buy51
out of 100
Grade: C-
IP
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.4%
Fair Value
$212.44
Current Price
$310.78
$98.34 premium
Margin of Safety
-73.0%
Fair Value
$28.43
Current Price
$33.61
$5.18 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 22.3x book value
Expensive relative to growth rate
Operating margin of 3.7%
Weak financial health signals
ROE of -22.6% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : IP
The strongest argument for IP centers on Price/Book. Revenue growth of 13.4% demonstrates continued momentum.
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.
Bear Case : IP
The primary concerns for IP are PEG Ratio, Operating Margin, Piotroski F-Score.
Key Dynamics to Monitor
HD profiles as a value stock while IP is a turnaround play — different risk/reward profiles.
HD carries more volatility with a beta of 0.97 — expect wider price swings.
IP is growing revenue faster at 13.4% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Bottom Line
HD scores higher overall (51/100 vs 50/100). 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.
International Paper
CONSUMER CYCLICAL · PACKAGING & CONTAINERS · USA
The International Paper Company (NYSE: IP) is an American pulp and paper company, the largest such company in the world. The company is headquartered in Memphis, Tennessee.
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