The Home Depot Inc (HD)vsFerrari NV (RACE)
HD
The Home Depot Inc
$321.65
+0.58%
CONSUMER CYCLICAL · Cap: $320.37B
RACE
Ferrari NV
$317.40
-1.91%
CONSUMER CYCLICAL · Cap: $56.52B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 2205% more annual revenue ($164.68B vs $7.15B). RACE leads profitability with a 22.4% profit margin vs 8.6%. HD appears more attractively valued with a PEG of 2.94. RACE earns a higher WallStSmart Score of 51/100 (C-).
HD
Hold50
out of 100
Grade: D+
RACE
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-232.6%
Fair Value
$96.70
Current Price
$321.65
$224.95 premium
Margin of Safety
-444.1%
Fair Value
$70.38
Current Price
$317.40
$247.02 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 146 in profit
Safe zone — low bankruptcy risk
Generating 2.3B in free cash flow
Every $100 of equity generates 43 in profit
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 28.6%
Generating 1.4B in free cash flow
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 25.0x book value
Revenue declined 3.8%
Premium valuation, high expectations priced in
Trading at 12.5x book value
3.8% revenue growth
Expensive relative to growth rate
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 22.4% and operating margin at 28.6%.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
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 1.04 — expect wider price swings.
RACE is growing revenue faster at 3.8% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RACE scores higher overall (51/100 vs 50/100), backed by strong 22.4% margins. Both earn "Buy" and "Hold" 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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