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HD vs KRT

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
KRT
Karat Packaging Inc.
NEUTRAL
Price
$29.78
Market Cap
$598.6M
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
HD
23.1
KRT
19.09
Forward P/E
HD
20.17
KRT
13.06
P/B Ratio
HD
25.57
KRT
3.98
P/S Ratio
HD
1.99
KRT
1.28
EV/EBITDA
HD
15.68
KRT
12.43

Profitability

Gross Margin
HD
33.32%
KRT
36.8%
Operating Margin
HD
10.08%
KRT
7.51%
Profit Margin
HD
8.6%
KRT
6.73%
ROE
HD
145.54%
KRT
20.47%
ROA
HD
12.98%
KRT
8.79%

Growth

Revenue Growth
HD
-3.8%
KRT
13.7%
Earnings Growth
HD
-14.2%
KRT
21.2%

Financial Health

Debt/Equity
HD
5.14
KRT
0.51
Current Ratio
HD
1.06
KRT
2.29
Quick Ratio
HD
0.21
KRT
1.06

Dividends

Dividend Yield
HD
2.83%
KRT
6.04%
Payout Ratio
HD
64.65%
KRT
115.38%

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
KRT NEUTRAL

KRT presents a dichotomy of strong growth and concerning sustainability, anchored by a stable Piotroski F-Score of 4/9. While the company exhibits impressive ROE (20.47%) and double-digit revenue and earnings growth, the dividend payout ratio of 115.38% is unsustainable and represents a significant risk. The stock is currently priced between its conservative Graham Number ($16.21) and its growth-based Intrinsic Value ($46.02), but a severely bearish technical trend (10/100) suggests immediate downward pressure.

Strengths
Strong ROE of 20.47% indicating efficient capital use
Robust revenue growth (13.70% YoY) and earnings growth (21.20% YoY)
Healthy balance sheet with a low Debt/Equity ratio of 0.51
Risks
Unsustainable dividend payout ratio of 115.38% (paying more than earned)
Severely bearish technical trend (10/100 score)
Poor recent earnings track record with only 1 beat in the last 4 quarters

Compare Another Pair

HD vs KRT: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and Karat Packaging Inc. (KRT) 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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