The Home Depot Inc (HD)vsShopify Inc (SHOP)
HD
The Home Depot Inc
$317.45
-1.61%
CONSUMER CYCLICAL · Cap: $321.36B
SHOP
Shopify Inc
$110.41
-1.19%
TECHNOLOGY · Cap: $136.82B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 1232% more annual revenue ($164.68B vs $12.37B). SHOP leads profitability with a 10.8% profit margin vs 8.6%. SHOP appears more attractively valued with a PEG of 2.41. SHOP earns a higher WallStSmart Score of 50/100 (C-).
HD
Hold50
out of 100
Grade: D+
SHOP
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.6%
Fair Value
$243.24
Current Price
$317.45
$74.21 premium
Margin of Safety
+26.1%
Fair Value
$158.22
Current Price
$110.41
$47.81 discount
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
Revenue surging 34.3% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 24.7x book value
Revenue declined 3.8%
Expensive relative to growth rate
Trading at 10.7x book value
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 34.3% demonstrates continued momentum.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 103.4x leaves little room for execution misses.
Key Dynamics to Monitor
HD profiles as a value stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.64 — expect wider price swings.
SHOP is growing revenue faster at 34.3% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
HD scores higher overall (50/100 vs 50/100). SHOP offers better value entry with a 26.1% margin of safety. Both earn "Hold" 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.
Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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