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HD vs MAR

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
MAR
Marriott International, Inc.
NEUTRAL
Price
$285.72
Market Cap
$77.13B
Sector
Consumer Cyclical
AI Confidence
72%

Valuation

P/E Ratio
HD
23.1
MAR
30.11
Forward P/E
HD
20.17
MAR
26.95
P/B Ratio
HD
25.57
MAR
-24.68
P/S Ratio
HD
1.99
MAR
11.22
EV/EBITDA
HD
15.68
MAR
20.19

Profitability

Gross Margin
HD
33.32%
MAR
81.55%
Operating Margin
HD
10.08%
MAR
65.93%
Profit Margin
HD
8.6%
MAR
37.98%
ROE
HD
145.54%
MAR
--
ROA
HD
12.98%
MAR
9.64%

Growth

Revenue Growth
HD
-3.8%
MAR
5.6%
Earnings Growth
HD
-14.2%
MAR
29.0%

Financial Health

Debt/Equity
HD
5.14
MAR
--
Current Ratio
HD
1.06
MAR
0.47
Quick Ratio
HD
0.21
MAR
0.43

Dividends

Dividend Yield
HD
2.83%
MAR
0.94%
Payout Ratio
HD
64.65%
MAR
27.43%

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
MAR NEUTRAL

Marriott International trades at a premium valuation with strong historical profitability and consistent earnings beats, supported by resilient cash flow generation and a disciplined capital return policy. However, near-term earnings growth has decelerated, with Q/Q EPS declining 6.8%, while insider selling worth $28.75M over the past six months raises caution. The stock's price momentum has lagged over the past year (+2.3%) despite solid long-term returns (+138.8% over 5Y), and its negative Price/Book ratio due to accumulated deficits undermines traditional valuation frameworks. Relative to Consumer Cyclical peers, MAR exhibits superior margins and lower leverage but trades at a steep P/E of 30x versus sector average of 61.5x, reflecting quality yet limited upside per analyst target of $290.08.

Strengths
Exceptional profitability with operating margin of 65.93% and gross margin of 81.55%, significantly above sector average profit margin of 8.54%
Consistent earnings outperformance: 21 beats in last 25 quarters, including 3 of last 4 quarters above estimates
Strong free cash flow conversion implied by high operating margin and low capex business model (asset-light franchising)
Risks
Negative Price/Book ratio (-24.68) indicating accumulated equity deficits, raising structural balance sheet concerns
Decelerating earnings growth: Q/Q EPS down 6.8% despite YoY increase of 19.3%, signaling near-term headwinds
Elevated P/E of 30.1x vs sector average of 61.5x, but unattractive on growth-adjusted basis given moderate 5.6% revenue growth

Compare Another Pair

HD vs MAR: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and Marriott International, Inc. (MAR) 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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