The Home Depot Inc (HD)vsStarbucks Corporation (SBUX)
HD
The Home Depot Inc
$343.44
-1.85%
CONSUMER CYCLICAL · Cap: $328.44B
SBUX
Starbucks Corporation
$105.41
-0.71%
CONSUMER CYCLICAL · Cap: $118.19B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 346% more annual revenue ($169.18B vs $37.91B). HD leads profitability with a 8.4% profit margin vs 6.7%. SBUX appears more attractively valued with a PEG of 1.14. HD earns a higher WallStSmart Score of 58/100 (C).
HD
Buy58
out of 100
Grade: C
SBUX
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.0%
Fair Value
$218.75
Current Price
$343.44
$124.69 premium
Margin of Safety
+19.7%
Fair Value
$123.37
Current Price
$105.41
$17.96 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
Earnings expanding 405.4% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 1.0B in free cash flow
Areas to Watch
Expensive relative to growth rate
4.6% earnings growth
Weak financial health signals
Trading at 20.6x book value
ROE of 0.0% — below average capital efficiency
6.7% margin — thin
Premium valuation, high expectations priced in
Revenue declined 4.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : SBUX
The strongest argument for SBUX centers on EPS Growth, Debt/Equity, Market Cap. PEG of 1.14 suggests the stock is reasonably priced for its growth.
Bear Case : HD
The primary concerns for HD are PEG Ratio, EPS Growth, Piotroski F-Score. Debt-to-equity of 3.77 is elevated, increasing financial risk.
Bear Case : SBUX
The primary concerns for SBUX are Return on Equity, Profit Margin, P/E Ratio. A P/E of 46.9x leaves little room for execution misses.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.00 — expect wider price swings.
HD is growing revenue faster at 5.7% — 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
HD scores higher overall (58/100 vs 51/100). SBUX offers better value entry with a 19.7% margin of safety. 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.
Starbucks Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.
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