WallStSmart

The Home Depot Inc (HD)vsWestern Digital Corporation (WDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 1434% more annual revenue ($164.68B vs $10.73B). WDC leads profitability with a 35.6% profit margin vs 8.6%. WDC appears more attractively valued with a PEG of 0.69. WDC earns a higher WallStSmart Score of 55/100 (C).

HD

Hold

45

out of 100

Grade: D+

Growth: 2.7Profit: 7.5Value: 4.7Quality: 5.8
Piotroski: 2/9Altman Z: 3.82

WDC

Buy

55

out of 100

Grade: C

Growth: 2.0Profit: 9.0Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HDSignificantly Overvalued (-238.9%)

Margin of Safety

-238.9%

Fair Value

$96.83

Current Price

$320.75

$223.92 premium

UndervaluedFair: $96.83Overvalued
WDCSignificantly Overvalued (-311.2%)

Margin of Safety

-311.2%

Fair Value

$66.57

Current Price

$293.10

$226.53 premium

UndervaluedFair: $66.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HD4 strengths · Avg: 9.5/10
Market CapQuality
$339.90B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
145.5%10/10

Every $100 of equity generates 146 in profit

Altman Z-ScoreHealth
3.8210/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$2.29B8/10

Generating 2.3B in free cash flow

WDC4 strengths · Avg: 9.3/10
Return on EquityProfitability
41.1%10/10

Every $100 of equity generates 41 in profit

Profit MarginProfitability
35.6%10/10

Keeps 36 of every $100 in revenue as profit

Market CapQuality
$100.21B9/10

Large-cap with strong market position

PEG RatioValuation
0.698/10

Growing faster than its price suggests

Areas to Watch

HD4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.122/10

Expensive relative to growth rate

Price/BookValuation
24.9x2/10

Trading at 24.9x book value

Revenue GrowthGrowth
-3.8%2/10

Revenue declined 3.8%

WDC4 concerns · Avg: 3.0/10
P/E RatioValuation
29.9x4/10

Moderate valuation

Price/BookValuation
14.0x4/10

Trading at 14.0x book value

Revenue GrowthGrowth
-41.0%2/10

Revenue declined 41.0%

EPS GrowthGrowth
-95.9%2/10

Earnings declined 95.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : HD

The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.

Bull Case : WDC

The strongest argument for WDC centers on Return on Equity, Profit Margin, Market Cap. Profitability is solid with margins at 35.6% and operating margin at 15.4%. PEG of 0.69 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 : WDC

The primary concerns for WDC are P/E Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

HD profiles as a value stock while WDC is a declining play — different risk/reward profiles.

WDC carries more volatility with a beta of 1.85 — expect wider price swings.

HD is growing revenue faster at -3.8% — sustainability is the question.

HD generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

WDC scores higher overall (55/100 vs 45/100), backed by strong 35.6% margins. Both earn "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.

Western Digital Corporation

TECHNOLOGY · COMPUTER HARDWARE · USA

Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.

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