The Home Depot Inc (HD)vsEl Pollo Loco Holdings Inc (LOCO)
HD
The Home Depot Inc
$308.74
+1.00%
CONSUMER CYCLICAL · Cap: $304.98B
LOCO
El Pollo Loco Holdings Inc
$15.18
+0.80%
CONSUMER CYCLICAL · Cap: $456.83M
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 33682% more annual revenue ($169.18B vs $500.79M). HD leads profitability with a 8.4% profit margin vs 7.0%. LOCO appears more attractively valued with a PEG of 1.16. LOCO earns a higher WallStSmart Score of 65/100 (C+).
HD
Buy58
out of 100
Grade: C
LOCO
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-41.8%
Fair Value
$217.78
Current Price
$308.74
$90.96 premium
Margin of Safety
+20.3%
Fair Value
$13.43
Current Price
$15.18
$1.75 discount
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
Reasonable price relative to book value
Earnings expanding 79.2% YoY
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Trading at 18.5x book value
4.6% earnings growth
Weak financial health signals
3.0% revenue growth
Distress zone — elevated risk
Smaller company, higher risk/reward
7.0% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : LOCO
The strongest argument for LOCO centers on Price/Book, EPS Growth, P/E Ratio. PEG of 1.16 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 : LOCO
The primary concerns for LOCO are Revenue Growth, Altman Z-Score, Market Cap.
Key Dynamics to Monitor
HD carries more volatility with a beta of 0.95 — 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
LOCO scores higher overall (65/100 vs 58/100). 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.
El Pollo Loco Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
El Pollo Loco Holdings, Inc., through its subsidiary El Pollo Loco, Inc., develops, franchises, licenses and operates quick service restaurants under the name El Pollo Loco. The company is headquartered in Costa Mesa, California.
Compare with Other HOME IMPROVEMENT RETAIL Stocks
Want to dig deeper into these stocks?