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HD vs LAD

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
LAD
Lithia Motors, Inc.
NEUTRAL
Price
$277.24
Market Cap
$6.46B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
HD
23.1
LAD
8.58
Forward P/E
HD
20.17
LAD
6.88
P/B Ratio
HD
25.57
LAD
0.99
P/S Ratio
HD
1.99
LAD
0.17
EV/EBITDA
HD
15.68
LAD
11.15

Profitability

Gross Margin
HD
33.32%
LAD
15.43%
Operating Margin
HD
10.08%
LAD
3.89%
Profit Margin
HD
8.6%
LAD
2.18%
ROE
HD
145.54%
LAD
12.42%
ROA
HD
12.98%
LAD
4.22%

Growth

Revenue Growth
HD
-3.8%
LAD
0.3%
Earnings Growth
HD
-14.2%
LAD
-28.4%

Financial Health

Debt/Equity
HD
5.14
LAD
2.35
Current Ratio
HD
1.06
LAD
1.17
Quick Ratio
HD
0.21
LAD
0.22

Dividends

Dividend Yield
HD
2.83%
LAD
0.79%
Payout Ratio
HD
64.65%
LAD
6.75%

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
LAD NEUTRAL

LAD presents a classic 'value trap' profile, characterized by a weak Piotroski F-Score of 3/9 indicating deteriorating financial health and crashing earnings growth (-28.4% YoY). While the stock appears significantly undervalued based on the Graham Number ($452.1) and a low P/E of 8.58, the fundamental decay and bearish technical trend offset these valuation advantages. The divergence between the bullish analyst target ($364.60) and the negative earnings trajectory suggests a disconnect between market expectations and current operational reality.

Strengths
Extremely low P/E ratio (8.58) and Forward P/E (6.88)
Strong defensive valuation relative to Graham Number ($452.1)
Very low Price-to-Sales ratio (0.17) indicating high revenue efficiency relative to market cap
Risks
Weak financial health as evidenced by a Piotroski F-Score of 3/9
Severe earnings contraction with YoY growth at -28.40% and Q/Q at -35.60%
High leverage with a Debt/Equity ratio of 2.35

Compare Another Pair

HD vs LAD: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and Lithia Motors, Inc. (LAD) 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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