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CAVA vs HD

CAVA
CAVA Group, Inc.
BEARISH
Price
$95.68
Market Cap
$11.14B
Sector
Consumer Cyclical
AI Confidence
90%
HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%

Valuation

P/E Ratio
CAVA
177.19
HD
23.1
Forward P/E
CAVA
132.05
HD
20.17
P/B Ratio
CAVA
14.25
HD
25.57
P/S Ratio
CAVA
9.44
HD
1.99
EV/EBITDA
CAVA
83.72
HD
15.68

Profitability

Gross Margin
CAVA
37.42%
HD
33.32%
Operating Margin
CAVA
1.39%
HD
10.08%
Profit Margin
CAVA
5.4%
HD
8.6%
ROE
CAVA
8.64%
HD
145.54%
ROA
CAVA
2.97%
HD
12.98%

Growth

Revenue Growth
CAVA
20.9%
HD
-3.8%
Earnings Growth
CAVA
-94.0%
HD
-14.2%

Financial Health

Debt/Equity
CAVA
0.6
HD
5.14
Current Ratio
CAVA
2.65
HD
1.06
Quick Ratio
CAVA
2.53
HD
0.21

Dividends

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

AI Verdict

CAVA BEARISH

CAVA exhibits a stable but mediocre Piotroski F-Score of 4/9, while its valuation is completely detached from fundamental reality. With a Graham Number of $9.03 and an Intrinsic Value of $3.78, the current price of $95.68 represents a massive premium that is not supported by the recent -94% collapse in earnings growth. Despite strong revenue growth and a healthy balance sheet, the combination of an astronomical P/E ratio (177.19), bearish insider selling, and a technical trend score of 10/100 suggests a high probability of a significant correction.

Strengths
Strong revenue growth of 20.90% YoY
Excellent liquidity with a Current Ratio of 2.65
Manageable leverage with a Debt/Equity ratio of 0.60
Risks
Extreme valuation with a P/E ratio of 177.19
Severe earnings contraction (-94% YoY growth)
Significant divergence between current price and Graham/Intrinsic values
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

CAVA vs HD: Head-to-Head Comparison

This page compares CAVA Group, Inc. (CAVA) 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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