The Home Depot Inc (HD)vsToll Brothers Inc (TOL)
HD
The Home Depot Inc
$323.05
+2.42%
CONSUMER CYCLICAL · Cap: $322.59B
TOL
Toll Brothers Inc
$141.60
+3.15%
CONSUMER CYCLICAL · Cap: $13.24B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 1363% more annual revenue ($164.68B vs $11.25B). TOL leads profitability with a 12.3% profit margin vs 8.6%. TOL appears more attractively valued with a PEG of 1.01. TOL earns a higher WallStSmart Score of 73/100 (B).
HD
Hold50
out of 100
Grade: D+
TOL
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.7%
Fair Value
$243.24
Current Price
$323.05
$79.81 premium
Margin of Safety
-34.2%
Fair Value
$120.36
Current Price
$141.60
$21.24 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
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Reasonable price relative to book value
15.4% revenue growth
Earnings expanding 25.1% YoY
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 25.1x book value
Revenue declined 3.8%
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : TOL
The strongest argument for TOL centers on P/E Ratio, Altman Z-Score, Price/Book. Revenue growth of 15.4% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : TOL
The primary concerns for TOL are Piotroski F-Score, Free Cash Flow.
Key Dynamics to Monitor
HD profiles as a value stock while TOL is a growth play — different risk/reward profiles.
TOL carries more volatility with a beta of 1.49 — expect wider price swings.
TOL is growing revenue faster at 15.4% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
TOL scores higher overall (73/100 vs 50/100) and 15.4% revenue growth. Both earn "Strong 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.
Toll Brothers Inc
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
Toll Brothers, Inc. designs, builds, markets, sells and manages the financing of a variety of detached and attached homes in luxury residential communities in the United States. The company is headquartered in Horsham, Pennsylvania.
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