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HD vs LEA

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
LEA
Lear Corporation
NEUTRAL
Price
$124.16
Market Cap
$6.29B
Sector
Consumer Cyclical
AI Confidence
80%

Valuation

P/E Ratio
HD
23.1
LEA
15.25
Forward P/E
HD
20.17
LEA
7.36
P/B Ratio
HD
25.57
LEA
1.25
P/S Ratio
HD
1.99
LEA
0.27
EV/EBITDA
HD
15.68
LEA
5.44

Profitability

Gross Margin
HD
33.32%
LEA
7.5%
Operating Margin
HD
10.08%
LEA
4.4%
Profit Margin
HD
8.6%
LEA
1.88%
ROE
HD
145.54%
LEA
10.76%
ROA
HD
12.98%
LEA
4.49%

Growth

Revenue Growth
HD
-3.8%
LEA
4.8%
Earnings Growth
HD
-14.2%
LEA
-2.0%

Financial Health

Debt/Equity
HD
5.14
LEA
0.67
Current Ratio
HD
1.06
LEA
1.35
Quick Ratio
HD
0.21
LEA
0.91

Dividends

Dividend Yield
HD
2.83%
LEA
2.48%
Payout Ratio
HD
64.65%
LEA
37.79%

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
LEA NEUTRAL

Lear Corporation presents a complex profile characterized by a stable Piotroski F-Score of 6/9 and a valuation that is defensively attractive, trading below its Graham Number of $134.94. While the forward P/E of 7.36 and PEG of 0.36 suggest significant undervaluation, this is offset by razor-thin profit margins (1.88%) and a bearish technical trend. The stark contrast between the Graham Number and the growth-based intrinsic value ($56.98) indicates a stock that is valued more for its assets and current earnings than for future growth. Overall, the strong analyst 'buy' consensus is countered by bearish insider selling and weak technical momentum.

Strengths
Highly attractive valuation metrics (Forward P/E 7.36, PEG 0.36)
Trading below the Graham Number ($134.94), providing a defensive margin of safety
Consistent history of earnings beats over the last 25 quarters
Risks
Extremely low profit margins (1.88%) leave little room for error in a cyclical industry
Bearish insider sentiment with 7 sell transactions and 0 buys in the last 6 months
Technical trend is currently 0/100 (Bearish)

Compare Another Pair

HD vs LEA: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and Lear Corporation (LEA) 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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