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HD vs LKQ

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
LKQ
LKQ Corporation
NEUTRAL
Price
$30.66
Market Cap
$7.82B
Sector
Consumer Cyclical
AI Confidence
80%

Valuation

P/E Ratio
HD
23.1
LKQ
13.27
Forward P/E
HD
20.17
LKQ
9.27
P/B Ratio
HD
25.57
LKQ
1.2
P/S Ratio
HD
1.99
LKQ
0.57
EV/EBITDA
HD
15.68
LKQ
8.42

Profitability

Gross Margin
HD
33.32%
LKQ
38.57%
Operating Margin
HD
10.08%
LKQ
6.43%
Profit Margin
HD
8.6%
LKQ
4.45%
ROE
HD
145.54%
LKQ
9.48%
ROA
HD
12.98%
LKQ
4.51%

Growth

Revenue Growth
HD
-3.8%
LKQ
2.7%
Earnings Growth
HD
-14.2%
LKQ
-57.7%

Financial Health

Debt/Equity
HD
5.14
LKQ
0.77
Current Ratio
HD
1.06
LKQ
1.67
Quick Ratio
HD
0.21
LKQ
0.48

Dividends

Dividend Yield
HD
2.83%
LKQ
3.86%
Payout Ratio
HD
64.65%
LKQ
51.95%

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
LKQ NEUTRAL

LKQ presents a classic value trap profile: fundamentally cheap but suffering from severe earnings deterioration. While the Piotroski F-Score of 4/9 indicates stable financial health and the current price ($30.66) sits below the Graham Number ($36.5), the company is grappling with a catastrophic -57.7% YoY earnings collapse. The disconnect between the low P/E (13.27) and the bearish technical trend (0/100) suggests the market is pricing in continued fundamental decay despite analyst optimism.

Strengths
Attractive valuation multiples (P/E 13.27, P/S 0.57)
Trading below the Graham Number defensive fair value of $36.5
Sustainable dividend yield of 3.86% with a reasonable 51.95% payout ratio
Risks
Severe earnings contraction (-57.7% YoY growth)
Strongly bearish technical trend (0/100 score)
Poor long-term price performance (-26.2% over 5 years)

Compare Another Pair

HD vs LKQ: Head-to-Head Comparison

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