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HD vs IP

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
IP
International Paper Company
BEARISH
Price
$34.02
Market Cap
$18.01B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
HD
23.1
IP
--
Forward P/E
HD
20.17
IP
12.29
P/B Ratio
HD
25.57
IP
1.21
P/S Ratio
HD
1.99
IP
0.76
EV/EBITDA
HD
15.68
IP
6.94

Profitability

Gross Margin
HD
33.32%
IP
29.74%
Operating Margin
HD
10.08%
IP
6.48%
Profit Margin
HD
8.6%
IP
-14.88%
ROE
HD
145.54%
IP
-24.68%
ROA
HD
12.98%
IP
2.47%

Growth

Revenue Growth
HD
-3.8%
IP
53.1%
Earnings Growth
HD
-14.2%
IP
--

Financial Health

Debt/Equity
HD
5.14
IP
0.71
Current Ratio
HD
1.06
IP
1.28
Quick Ratio
HD
0.21
IP
0.65

Dividends

Dividend Yield
HD
2.83%
IP
5.44%
Payout Ratio
HD
64.65%
IP
158.12%

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
IP BEARISH

The deterministic health profile is severely compromised, highlighted by a Piotroski F-Score of 2/9, indicating weak financial health and deteriorating fundamentals. While revenue growth appears strong at 53.10%, this has not translated to the bottom line, as evidenced by a negative profit margin of -14.88% and a staggering -300% YoY EPS growth. The dividend is currently unsustainable with a payout ratio of 158.12%, signaling a high risk of a dividend cut. Technicals are completely bearish (0/100), and the stock is trading near its 52-week low despite optimistic analyst targets.

Strengths
Strong top-line revenue growth (53.10% YoY)
Low Price-to-Sales ratio (0.76) suggesting potential asset undervaluation
Reasonable Debt/Equity ratio (0.71) compared to sector average
Risks
Severe financial health deterioration (Piotroski F-Score 2/9)
Unsustainable dividend payout ratio (158.12%)
Consistent earnings misses (0/4 beats in last 4 quarters)

Compare Another Pair

HD vs IP: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and International Paper Company (IP) 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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