The Home Depot Inc (HD)vsStandard Motor Products Inc (SMP)
HD
The Home Depot Inc
$292.14
-1.54%
CONSUMER CYCLICAL · Cap: $304.98B
SMP
Standard Motor Products Inc
$37.31
-1.01%
CONSUMER CYCLICAL · Cap: $821.45M
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 9111% more annual revenue ($169.18B vs $1.84B). HD leads profitability with a 8.4% profit margin vs 2.8%. SMP appears more attractively valued with a PEG of 0.53. SMP earns a higher WallStSmart Score of 63/100 (C+).
HD
Buy58
out of 100
Grade: C
SMP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.8%
Fair Value
$217.98
Current Price
$292.14
$74.16 premium
Margin of Safety
-13.8%
Fair Value
$39.35
Current Price
$37.31
$2.04 premium
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
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Trading at 17.5x book value
4.6% earnings growth
Weak financial health signals
1.6% revenue growth
Smaller company, higher risk/reward
ROE of 7.1% — below average capital efficiency
2.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : SMP
The strongest argument for SMP centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.53 suggests the stock is reasonably priced for its growth.
Bear Case : HD
The primary concerns for HD are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 3.77 is elevated, increasing financial risk.
Bear Case : SMP
The primary concerns for SMP are Revenue Growth, Market Cap, Return on Equity. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
HD carries more volatility with a beta of 0.95 — 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
SMP scores higher overall (63/100 vs 58/100). 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.
Standard Motor Products Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Standard Motor Products, Inc. manufactures and distributes motor vehicle replacement parts to the automotive aftermarket industry. The company is headquartered in Long Island City, New York.
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