WallStSmart

The Home Depot Inc (HD)vsYum China Holdings Inc (YUMC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 1296% more annual revenue ($164.68B vs $11.80B). HD leads profitability with a 8.6% profit margin vs 7.9%. YUMC appears more attractively valued with a PEG of 1.27. YUMC earns a higher WallStSmart Score of 64/100 (C+).

HD

Hold

50

out of 100

Grade: D+

Growth: 2.7Profit: 7.5Value: 3.3Quality: 5.8
Piotroski: 2/9Altman Z: 3.82

YUMC

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 6.0Value: 7.3Quality: 6.0
Piotroski: 5/9Altman Z: 2.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HDSignificantly Overvalued (-234.5%)

Margin of Safety

-234.5%

Fair Value

$96.70

Current Price

$321.65

$224.95 premium

UndervaluedFair: $96.70Overvalued
YUMCUndervalued (+52.2%)

Margin of Safety

+52.2%

Fair Value

$117.47

Current Price

$49.59

$67.88 discount

UndervaluedFair: $117.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HD4 strengths · Avg: 9.5/10
Market CapQuality
$320.37B10/10

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

YUMC1 strengths · Avg: 8.0/10
EPS GrowthGrowth
34.3%8/10

Earnings expanding 34.3% YoY

Areas to Watch

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

Weak financial health signals

PEG RatioValuation
2.942/10

Expensive relative to growth rate

Price/BookValuation
25.0x2/10

Trading at 25.0x book value

Revenue GrowthGrowth
-3.8%2/10

Revenue declined 3.8%

YUMC2 concerns · Avg: 2.5/10
Profit MarginProfitability
7.9%3/10

7.9% margin — thin

Free Cash FlowQuality
$-112.93M2/10

Negative free cash flow — burning cash

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 : YUMC

The strongest argument for YUMC centers on EPS Growth. PEG of 1.27 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 : YUMC

The primary concerns for YUMC are Profit Margin, Free Cash Flow.

Key Dynamics to Monitor

HD carries more volatility with a beta of 1.04 — expect wider price swings.

YUMC is growing revenue faster at 8.8% — sustainability is the question.

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

Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

YUMC scores higher overall (64/100 vs 50/100). 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.

Yum China Holdings Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum China Holdings, Inc. owns, operates and franchises restaurants in China. The company is headquartered in Shanghai, China.

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