The Home Depot Inc (HD)vsRalph Lauren Corp Class A (RL)
HD
The Home Depot Inc
$326.62
+5.62%
CONSUMER CYCLICAL · Cap: $336.21B
RL
Ralph Lauren Corp Class A
$410.92
-0.05%
CONSUMER CYCLICAL · Cap: $24.04B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 1953% more annual revenue ($166.59B vs $8.11B). RL leads profitability with a 11.6% profit margin vs 8.4%. HD appears more attractively valued with a PEG of 1.86. RL earns a higher WallStSmart Score of 62/100 (C+).
HD
Buy51
out of 100
Grade: C-
RL
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.4%
Fair Value
$212.44
Current Price
$326.62
$114.18 premium
Intrinsic value data unavailable for RL.
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 33 in profit
Safe zone — low bankruptcy risk
16.6% revenue growth
Earnings expanding 20.0% YoY
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 23.5x book value
Expensive relative to growth rate
Moderate valuation
Trading at 8.6x book value
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : RL
The strongest argument for RL centers on Return on Equity, Altman Z-Score, Revenue Growth. Revenue growth of 16.6% 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 : RL
The primary concerns for RL are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
HD profiles as a value stock while RL is a growth play — different risk/reward profiles.
RL carries more volatility with a beta of 1.37 — expect wider price swings.
RL is growing revenue faster at 16.6% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Bottom Line
RL scores higher overall (62/100 vs 51/100) and 16.6% 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.
Ralph Lauren Corp Class A
CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA
Ralph Lauren Corporation is an American fashion company producing products ranging from the mid-range to the luxury segments. They are known for the clothing, marketing and distribution of products in four categories: apparel, home, accessories, and fragrances.
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