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HD vs IHG

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
IHG
InterContinental Hotels Group PLC
NEUTRAL
Price
$144.47
Market Cap
$21.53B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
HD
23.1
IHG
29.67
Forward P/E
HD
20.17
IHG
21.7
P/B Ratio
HD
25.57
IHG
-47.59
P/S Ratio
HD
1.99
IHG
4.15
EV/EBITDA
HD
15.68
IHG
20.3

Profitability

Gross Margin
HD
33.32%
IHG
61.94%
Operating Margin
HD
10.08%
IHG
22.21%
Profit Margin
HD
8.6%
IHG
14.61%
ROE
HD
145.54%
IHG
--
ROA
HD
12.98%
IHG
15.02%

Growth

Revenue Growth
HD
-3.8%
IHG
2.7%
Earnings Growth
HD
-14.2%
IHG
7.7%

Financial Health

Debt/Equity
HD
5.14
IHG
--
Current Ratio
HD
1.06
IHG
0.98
Quick Ratio
HD
0.21
IHG
0.93

Dividends

Dividend Yield
HD
2.83%
IHG
1.28%
Payout Ratio
HD
64.65%
IHG
35.56%

AI Verdict

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
IHG NEUTRAL

IHG demonstrates strong operational health with a Piotroski F-Score of 7/9, indicating a robust financial foundation. However, the stock is significantly overvalued, trading at $144.47 against an intrinsic value of $90.34 and an analyst target of $137.50. While margins remain healthy and the dividend is sustainable, the technical trend is heavily bearish (10/100) and recent earnings performance has been weak, with only one beat in the last four quarters. The company's asset-light strategy is evident in the negative Price/Book ratio, but sluggish revenue growth (2.7%) limits the catalyst for further price appreciation.

Strengths
Strong operational health (Piotroski F-Score 7/9)
High gross margins (61.94%) and operating margins (22.21%)
Sustainable dividend payout ratio (35.56%)
Risks
Significant valuation premium over intrinsic value ($144.47 vs $90.34)
Severely bearish technical trend (10/100)
Stagnant revenue growth (2.7% YoY)

Compare Another Pair

HD vs IHG: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and InterContinental Hotels Group PLC (IHG) 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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