The Home Depot Inc (HD)vsMacy’s Inc (M)
HD
The Home Depot Inc
$320.75
-2.27%
CONSUMER CYCLICAL · Cap: $339.90B
M
Macy’s Inc
$17.87
-1.00%
CONSUMER CYCLICAL · Cap: $4.50B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 625% more annual revenue ($164.68B vs $22.71B). HD leads profitability with a 8.6% profit margin vs 2.1%. M appears more attractively valued with a PEG of 1.82. M earns a higher WallStSmart Score of 51/100 (C-).
HD
Hold45
out of 100
Grade: D+
M
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-238.9%
Fair Value
$96.83
Current Price
$320.75
$223.92 premium
Margin of Safety
-88.0%
Fair Value
$11.56
Current Price
$17.87
$6.31 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 77.0%
Revenue surging 20.0% year-over-year
Generating 1.1B in free cash flow
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 24.9x book value
Revenue declined 3.8%
Expensive relative to growth rate
2.1% margin — thin
Earnings declined 60.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : M
The strongest argument for M centers on P/E Ratio, Price/Book, Operating Margin. Revenue growth of 20.0% demonstrates continued momentum.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : M
The primary concerns for M are PEG Ratio, Profit Margin, EPS Growth. Thin 2.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
HD profiles as a value stock while M is a growth play — different risk/reward profiles.
M carries more volatility with a beta of 1.52 — expect wider price swings.
M is growing revenue faster at 20.0% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
M scores higher overall (51/100 vs 45/100) and 20.0% revenue growth. 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.
Macy’s Inc
CONSUMER CYCLICAL · DEPARTMENT STORES · USA
Macy's, Inc., an omnichannel retail organization, operates stores, websites, and mobile apps under the Macy's, Bloomingdale's and bluemercury brands. The company is headquartered in New York, New York.
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