The Home Depot Inc (HD)vsFerrari NV (RACE)
HD
The Home Depot Inc
$352.28
+0.53%
CONSUMER CYCLICAL · Cap: $347.85B
RACE
Ferrari NV
$368.34
+1.07%
CONSUMER CYCLICAL · Cap: $64.83B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 2213% more annual revenue ($166.59B vs $7.20B). RACE leads profitability with a 22.2% profit margin vs 8.4%. HD appears more attractively valued with a PEG of 1.97. HD earns a higher WallStSmart Score of 51/100 (C-).
HD
Buy51
out of 100
Grade: C-
RACE
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-64.2%
Fair Value
$212.44
Current Price
$352.28
$139.84 premium
Margin of Safety
-50.9%
Fair Value
$244.05
Current Price
$368.34
$124.29 premium
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 39 in profit
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.5%
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 25.3x book value
Premium valuation, high expectations priced in
Trading at 13.9x book value
3.2% revenue growth
1.3% earnings growth
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : RACE
The strongest argument for RACE centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 22.2% and operating margin at 29.5%.
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 : RACE
The primary concerns for RACE are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
HD carries more volatility with a beta of 0.97 — expect wider price swings.
HD is growing revenue faster at 4.8% — 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
HD scores higher overall (51/100 vs 50/100). 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.
Ferrari NV
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Ferrari NV designs, designs, produces and sells high performance sports cars. The company is headquartered in Maranello, Italy.
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