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ABG vs HD

ABG
Asbury Automotive Group, Inc.
NEUTRAL
Price
$238.04
Market Cap
$4.68B
Sector
Consumer Cyclical
AI Confidence
72%
HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%

Valuation

P/E Ratio
ABG
8.76
HD
23.1
Forward P/E
ABG
8.53
HD
20.17
P/B Ratio
ABG
1.19
HD
25.57
P/S Ratio
ABG
0.26
HD
1.99
EV/EBITDA
ABG
9.55
HD
15.68

Profitability

Gross Margin
ABG
16.99%
HD
33.32%
Operating Margin
ABG
5.5%
HD
10.08%
Profit Margin
ABG
3.15%
HD
8.6%
ROE
ABG
15.49%
HD
145.54%
ROA
ABG
5.85%
HD
12.98%

Growth

Revenue Growth
ABG
13.3%
HD
-3.8%
Earnings Growth
ABG
18.1%
HD
-14.2%

Financial Health

Debt/Equity
ABG
1.54
HD
5.14
Current Ratio
ABG
0.99
HD
1.06
Quick Ratio
ABG
0.16
HD
0.21

Dividends

Dividend Yield
ABG
--
HD
2.83%
Payout Ratio
ABG
0.0%
HD
64.65%

AI Verdict

ABG NEUTRAL

ABG exhibits strong fundamental health with a Piotroski F-Score of 7/9, indicating robust accounting strength, though the absence of an Altman Z-Score limits distress risk assessment. The stock appears undervalued relative to its Graham Number of $349.14 and intrinsic value of $801.22, trading at $238.04, but elevated leverage and weak technicals weigh on sentiment. Solid profitability metrics, double-digit revenue and earnings growth, and strong ROE contrast with insider selling and a bearish technical trend. Analysts concur with a 'hold' rating, aligning with mixed signals between value and sentiment.

Strengths
Strong Piotroski F-Score of 7/9 indicates high financial health and quality earnings
Attractive valuation: trading significantly below Graham Number ($349.14) and far below intrinsic value ($801.22)
Robust profitability with ROE of 15.49% and operating margin of 5.50%, well above sector average
Risks
High debt/equity ratio of 1.54, above sector average (1.60), indicating elevated financial leverage
Current ratio of 0.99 and quick ratio of 0.16 signal potential short-term liquidity pressure
Insider selling activity: $1.01M in net sales over last 6 months, signaling lack of confidence
HD BEARISH

HD shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Concerns include weak profitability or high valuation.

Strengths
Strong ROE of 145.5%
Risks
Premium vs Graham Number ($64.2)
Declining revenue (-3.8%)
High debt burden with D/E of 5.14

Compare Another Pair

ABG vs HD: Head-to-Head Comparison

This page compares Asbury Automotive Group, Inc. (ABG) and The Home Depot, Inc. (HD) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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