The Home Depot Inc (HD)vsO’Reilly Automotive Inc (ORLY)
HD
The Home Depot Inc
$348.86
+1.12%
CONSUMER CYCLICAL · Cap: $347.85B
ORLY
O’Reilly Automotive Inc
$89.55
+3.05%
CONSUMER CYCLICAL · Cap: $74.21B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 815% more annual revenue ($166.59B vs $18.21B). ORLY leads profitability with a 14.3% profit margin vs 8.4%. ORLY appears more attractively valued with a PEG of 1.91. ORLY earns a higher WallStSmart Score of 62/100 (C+).
HD
Buy51
out of 100
Grade: C-
ORLY
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-64.2%
Fair Value
$212.44
Current Price
$348.86
$136.42 premium
Margin of Safety
+75.3%
Fair Value
$363.32
Current Price
$89.55
$273.77 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
Every $100 of equity generates 59 in profit
Conservative balance sheet, low leverage
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 25.1x book value
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : ORLY
The strongest argument for ORLY centers on Return on Equity, Debt/Equity, Market Cap. Revenue growth of 10.2% demonstrates continued momentum.
Bear Case : HD
The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.
Bear Case : ORLY
The primary concerns for ORLY are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
HD carries more volatility with a beta of 0.97 — expect wider price swings.
ORLY is growing revenue faster at 10.2% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ORLY scores higher overall (62/100 vs 51/100) and 10.2% revenue growth. 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.
O’Reilly Automotive Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
O'Reilly Auto Parts is an American auto parts retailer that provides automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States serving both the professional service providers and do-it-yourself customers.
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