The Home Depot Inc (HD)vsMacy’s Inc (M)
HD
The Home Depot Inc
$328.95
+3.59%
CONSUMER CYCLICAL · Cap: $308.91B
M
Macy’s Inc
$23.74
-0.50%
CONSUMER CYCLICAL · Cap: $6.27B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 643% more annual revenue ($169.18B vs $22.78B). HD leads profitability with a 8.4% profit margin vs 3.3%. HD appears more attractively valued with a PEG of 2.50. M earns a higher WallStSmart Score of 61/100 (C+).
HD
Buy56
out of 100
Grade: C
M
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-46.4%
Fair Value
$218.46
Current Price
$328.95
$110.49 premium
Margin of Safety
+30.6%
Fair Value
$32.33
Current Price
$23.74
$8.59 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
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 100.0% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 19.8x book value
4.6% earnings growth
Weak financial health signals
1.2% revenue growth
3.3% margin — thin
Operating margin of 3.2%
Elevated debt levels
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, EPS 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 : M
The primary concerns for M are Revenue Growth, Profit Margin, Operating Margin. Thin 3.3% margins leave little buffer for downturns.
Key Dynamics to Monitor
M carries more volatility with a beta of 1.47 — 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
M scores higher overall (61/100 vs 56/100). 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.
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.
Compare with Other HOME IMPROVEMENT RETAIL Stocks
Want to dig deeper into these stocks?