The Home Depot Inc (HD)vsO’Reilly Automotive Inc (ORLY)
HD
The Home Depot Inc
$308.74
+1.00%
CONSUMER CYCLICAL · Cap: $304.98B
ORLY
O’Reilly Automotive Inc
$85.82
+0.36%
CONSUMER CYCLICAL · Cap: $69.43B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 811% more annual revenue ($169.18B vs $18.57B). ORLY leads profitability with a 14.3% profit margin vs 8.4%. ORLY appears more attractively valued with a PEG of 1.60. ORLY earns a higher WallStSmart Score of 64/100 (C+).
HD
Buy58
out of 100
Grade: C
ORLY
Buy64
out of 100
Grade: C+
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
+76.8%
Fair Value
$370.53
Current Price
$85.82
$284.71 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
Every $100 of equity generates 59 in profit
Conservative balance sheet, low leverage
Large-cap with strong market position
Strong operational efficiency at 20.2%
Areas to Watch
Expensive relative to growth rate
Trading at 18.5x book value
4.6% earnings growth
Weak financial health signals
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.
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 : 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 0.95 — expect wider price swings.
ORLY is growing revenue faster at 8.1% — 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
ORLY scores higher overall (64/100 vs 58/100). 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.
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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