The Home Depot Inc (HD)vsLKQ Corporation (LKQ)
HD
The Home Depot Inc
$310.78
+0.73%
CONSUMER CYCLICAL · Cap: $310.62B
LKQ
LKQ Corporation
$25.22
-0.16%
CONSUMER CYCLICAL · Cap: $6.68B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 1108% more annual revenue ($166.59B vs $13.79B). HD leads profitability with a 8.4% profit margin vs 3.8%. LKQ appears more attractively valued with a PEG of 1.06. HD earns a higher WallStSmart Score of 54/100 (C-).
HD
Buy54
out of 100
Grade: C-
LKQ
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-46.5%
Fair Value
$212.07
Current Price
$310.78
$98.71 premium
Margin of Safety
+66.6%
Fair Value
$104.28
Current Price
$25.22
$79.06 discount
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
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 22.3x book value
4.3% revenue growth
3.8% margin — thin
Weak financial health signals
Earnings declined 52.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : LKQ
The strongest argument for LKQ centers on Price/Book, P/E Ratio. PEG of 1.06 suggests the stock is reasonably priced for its growth.
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 : LKQ
The primary concerns for LKQ are Revenue Growth, Profit Margin, Piotroski F-Score. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.00 — expect wider price swings.
HD is growing revenue faster at 4.8% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (54/100 vs 52/100). LKQ offers better value entry with a 66.6% margin of safety. Both earn "Buy" and "Buy" 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.
LKQ Corporation
CONSUMER CYCLICAL · AUTO PARTS · USA
LKQ Corporation (Like Kind and Quality) is an American provider of alternative and speciality parts to repair and accessorise automobiles and other vehicles.
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