The Home Depot Inc (HD)vsMeritage Corporation (MTH)
HD
The Home Depot Inc
$310.91
+0.70%
CONSUMER CYCLICAL · Cap: $304.98B
MTH
Meritage Corporation
$64.22
+3.66%
CONSUMER CYCLICAL · Cap: $4.16B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 3038% more annual revenue ($169.18B vs $5.39B). HD leads profitability with a 8.4% profit margin vs 6.1%. MTH appears more attractively valued with a PEG of 0.54. HD earns a higher WallStSmart Score of 58/100 (C).
HD
Buy58
out of 100
Grade: C
MTH
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-41.8%
Fair Value
$217.78
Current Price
$310.91
$93.13 premium
Margin of Safety
+3.2%
Fair Value
$80.63
Current Price
$64.22
$16.41 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
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Trading at 18.7x book value
4.6% earnings growth
Weak financial health signals
ROE of 7.6% — below average capital efficiency
6.1% margin — thin
Weak financial health signals
Revenue declined 13.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : MTH
The strongest argument for MTH centers on Price/Book, Altman Z-Score, PEG Ratio. PEG of 0.54 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 : MTH
The primary concerns for MTH are Return on Equity, Profit Margin, Piotroski F-Score.
Key Dynamics to Monitor
MTH carries more volatility with a beta of 1.36 — 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
HD scores higher overall (58/100 vs 57/100). 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.
Meritage Corporation
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
Meritage Homes Corporation designs and builds single-family homes in the United States. The company is headquartered in Scottsdale, Arizona.
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