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BROS vs HD

BROS
Dutch Bros Inc.
NEUTRAL
Price
$60.97
Market Cap
$10.04B
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
BROS
124.43
HD
23.1
Forward P/E
BROS
68.24
HD
20.17
P/B Ratio
BROS
11.8
HD
25.57
P/S Ratio
BROS
6.53
HD
1.99
EV/EBITDA
BROS
33.49
HD
15.68

Profitability

Gross Margin
BROS
26.33%
HD
33.32%
Operating Margin
BROS
10.42%
HD
10.08%
Profit Margin
BROS
4.04%
HD
8.6%
ROE
BROS
11.68%
HD
145.54%
ROA
BROS
3.54%
HD
12.98%

Growth

Revenue Growth
BROS
25.2%
HD
-3.8%
Earnings Growth
BROS
24.0%
HD
-14.2%

Financial Health

Debt/Equity
BROS
1.2
HD
5.14
Current Ratio
BROS
1.52
HD
1.06
Quick Ratio
BROS
1.26
HD
0.21

Dividends

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

AI Verdict

BROS NEUTRAL

The Advanced Deterministic Scorecard reveals a mixed financial profile: the Piotroski F-Score of 4/9 indicates borderline stability, while the absence of an Altman Z-Score prevents a full distress risk assessment. Despite strong revenue and earnings growth, elevated valuation multiples—P/E of 124.43 and Price/Book of 11.80—suggest the stock is pricing in aggressive future expectations. Profitability margins and ROE are above sector averages, but insider selling worth over $600M in the last six months raises concern about confidence at the top. Analysts maintain a strong_buy consensus, yet technical trend and recent price performance show weakness, indicating potential near-term headwinds.

Strengths
Strong year-over-year revenue growth of 25.20%, significantly above sector average of 7.83%
High operating leverage with operating margin at 10.42% and gross margin at 26.33%
Consistently beats earnings estimates, with 3 out of last 4 quarters exceeding expectations and an average surprise of 17.60%
Risks
Piotroski F-Score of 4/9 suggests weak financial health, increasing vulnerability to downturns
Extremely high P/E ratio of 124.43, more than double the sector average of 52.75, implying overvaluation risk
Debt/Equity ratio of 1.20 is high, though below sector average of 1.63, still elevating financial risk
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

BROS vs HD: Head-to-Head Comparison

This page compares Dutch Bros Inc. (BROS) 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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