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HD vs LOCO

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
LOCO
El Pollo Loco Holdings, Inc.
NEUTRAL
Price
$13.86
Market Cap
$415.2M
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
HD
23.1
LOCO
15.4
Forward P/E
HD
20.17
LOCO
12.55
P/B Ratio
HD
25.57
LOCO
1.43
P/S Ratio
HD
1.99
LOCO
0.85
EV/EBITDA
HD
15.68
LOCO
10.54

Profitability

Gross Margin
HD
33.32%
LOCO
22.15%
Operating Margin
HD
10.08%
LOCO
8.71%
Profit Margin
HD
8.6%
LOCO
5.41%
ROE
HD
145.54%
LOCO
9.6%
ROA
HD
12.98%
LOCO
4.76%

Growth

Revenue Growth
HD
-3.8%
LOCO
8.1%
Earnings Growth
HD
-14.2%
LOCO
8.1%

Financial Health

Debt/Equity
HD
5.14
LOCO
0.83
Current Ratio
HD
1.06
LOCO
0.32
Quick Ratio
HD
0.21
LOCO
0.22

Dividends

Dividend Yield
HD
2.83%
LOCO
--
Payout Ratio
HD
64.65%
LOCO
0.0%

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
LOCO NEUTRAL

LOCO presents a classic value opportunity with a Piotroski F-Score of 4/9 (Stable) and a current price ($13.86) trading slightly below its Graham Number ($14.03) and well below its intrinsic value ($17.23). While the company demonstrates an exceptional track record of earnings beats and attractive valuation multiples relative to the Consumer Cyclical sector, severe liquidity constraints are evident. The current ratio of 0.32 and quick ratio of 0.22 indicate significant short-term solvency risks that offset the positive valuation and growth metrics.

Strengths
Strong valuation with P/E (15.40) significantly lower than sector average (36.65)
Consistent earnings outperformance with 3/4 recent beats and high average surprise (22.61%)
Trading below both Graham Number ($14.03) and Intrinsic Value ($17.23)
Risks
Critical liquidity risk indicated by a very low Current Ratio (0.32) and Quick Ratio (0.22)
Bearish technical trend (10/100) suggesting a potential short-term price reversal
Mediocre Piotroski F-Score (4/9) indicating stagnant financial health improvement

Compare Another Pair

HD vs LOCO: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and El Pollo Loco Holdings, Inc. (LOCO) 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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