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GPI vs HD

GPI
Group 1 Automotive, Inc.
NEUTRAL
Price
$339.52
Market Cap
$4.03B
Sector
Consumer Cyclical
AI Confidence
85%
HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%

Valuation

P/E Ratio
GPI
13.52
HD
23.1
Forward P/E
GPI
7.24
HD
20.17
P/B Ratio
GPI
1.45
HD
25.57
P/S Ratio
GPI
0.18
HD
1.99
EV/EBITDA
GPI
9.13
HD
15.68

Profitability

Gross Margin
GPI
16.05%
HD
33.32%
Operating Margin
GPI
3.89%
HD
10.08%
Profit Margin
GPI
1.44%
HD
8.6%
ROE
GPI
11.23%
HD
145.54%
ROA
GPI
5.93%
HD
12.98%

Growth

Revenue Growth
GPI
0.6%
HD
-3.8%
Earnings Growth
GPI
-50.2%
HD
-14.2%

Financial Health

Debt/Equity
GPI
2.1
HD
5.14
Current Ratio
GPI
1.08
HD
1.06
Quick Ratio
GPI
0.19
HD
0.21

Dividends

Dividend Yield
GPI
0.65%
HD
2.83%
Payout Ratio
GPI
7.96%
HD
64.65%

AI Verdict

GPI NEUTRAL

GPI presents a stark divergence between valuation and fundamental momentum. While the Piotroski F-Score of 4/9 indicates stable health and the stock trades below its Graham Number ($363.74), the company is facing a severe earnings collapse with YoY earnings growth down 50.20%. The valuation metrics (P/E 13.52, PEG 0.36) appear attractive, but the technical trend is completely bearish (0/100) and liquidity is dangerously low as evidenced by a Quick Ratio of 0.19. The stock is currently a value trap candidate where low multiples are justified by deteriorating growth and thin margins.

Strengths
Trading below Graham Number ($363.74) suggesting defensive undervaluation
Very low PEG ratio (0.36) indicating potential value relative to growth
Low P/E (13.52) and Forward P/E (7.24) compared to sector average
Risks
Severe earnings deterioration (-50.20% YoY growth)
Critical liquidity risk indicated by a Quick Ratio of 0.19
Very thin net profit margins (1.44%) leaving little room for error
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

GPI vs HD: Head-to-Head Comparison

This page compares Group 1 Automotive, Inc. (GPI) 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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