The Home Depot Inc (HD)vsMohawk Industries Inc (MHK)
HD
The Home Depot Inc
$308.74
+1.00%
CONSUMER CYCLICAL · Cap: $304.98B
MHK
Mohawk Industries Inc
$126.79
+2.05%
CONSUMER CYCLICAL · Cap: $8.79B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 1414% more annual revenue ($169.18B vs $11.18B). HD leads profitability with a 8.4% profit margin vs 4.2%. MHK appears more attractively valued with a PEG of 0.64. MHK earns a higher WallStSmart Score of 66/100 (B-).
HD
Buy58
out of 100
Grade: C
MHK
Strong Buy66
out of 100
Grade: B-
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
-6.3%
Fair Value
$126.94
Current Price
$126.79
$0.15 premium
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
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Earnings expanding 37.6% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 18.5x book value
4.6% earnings growth
Weak financial health signals
ROE of 5.0% — below average capital efficiency
4.2% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : MHK
The strongest argument for MHK centers on Price/Book, Debt/Equity, PEG Ratio. PEG of 0.64 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 : MHK
The primary concerns for MHK are Return on Equity, Profit Margin, Piotroski F-Score. Thin 4.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
MHK carries more volatility with a beta of 1.18 — expect wider price swings.
MHK is growing revenue faster at 6.8% — 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
MHK scores higher overall (66/100 vs 58/100). Both earn "Strong 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.
Mohawk Industries Inc
CONSUMER CYCLICAL · FURNISHINGS, FIXTURES & APPLIANCES · USA
Mohawk Industries is an American flooring manufacturer based in Calhoun, Georgia, United States. Mohawk produces floor covering products for residential and commercial applications in North America and residential applications in Europe.
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