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AN vs HD

AN
AutoNation, Inc.
NEUTRAL
Price
$214.26
Market Cap
$7.81B
Sector
Consumer Cyclical
AI Confidence
65%
HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%

Valuation

P/E Ratio
AN
12.9
HD
23.1
Forward P/E
AN
10.12
HD
20.17
P/B Ratio
AN
3.15
HD
25.57
P/S Ratio
AN
0.28
HD
1.99
EV/EBITDA
AN
10.51
HD
15.68

Profitability

Gross Margin
AN
17.82%
HD
33.32%
Operating Margin
AN
4.7%
HD
10.08%
Profit Margin
AN
2.38%
HD
8.6%
ROE
AN
27.16%
HD
145.54%
ROA
AN
6.53%
HD
12.98%

Growth

Revenue Growth
AN
6.9%
HD
-3.8%
Earnings Growth
AN
22.6%
HD
-14.2%

Financial Health

Debt/Equity
AN
3.9
HD
5.14
Current Ratio
AN
0.79
HD
1.06
Quick Ratio
AN
0.17
HD
0.21

Dividends

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

AI Verdict

AN NEUTRAL

AutoNation's deterministic health scores raise significant concerns, with a weak Piotroski F-Score of 3/9 indicating poor financial health, and no available Altman Z-Score limits distress risk assessment. Despite this, the company shows strong recent earnings growth (22.6% YoY) and beats on earnings surprises, supported by a bullish analyst recommendation and a forward P/E of 10.12 that appears cheap relative to sector peers. However, high leverage (Debt/Equity of 3.90), weak liquidity (Current Ratio 0.79), and declining Q/Q EPS (-8.2%) offset these positives. The stock trades below the growth-based intrinsic value of $490 but above the conservative Graham Number of $159.54, suggesting mixed valuation signals.

Strengths
Strong year-over-year earnings growth of 22.6% and consistent earnings beat history (3 out of last 4 quarters)
Attractive forward P/E of 10.12, significantly below sector average of 52.74, indicating potential undervaluation
High return on equity (ROE) of 27.16%, well above sector average of 6.55%, reflecting efficient use of equity capital
Risks
Very weak Piotroski F-Score of 3/9, signaling poor financial health and potential instability
High debt burden with Debt/Equity ratio of 3.90, well above sector average of 1.59, increasing financial risk
Poor liquidity position: Current Ratio of 0.79 and Quick Ratio of 0.17 indicate potential difficulty meeting short-term obligations
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

AN vs HD: Head-to-Head Comparison

This page compares AutoNation, Inc. (AN) 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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