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HD vs PAG

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
PAG
Penske Automotive Group, Inc.
NEUTRAL
Price
$171.52
Market Cap
$11.28B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
HD
23.1
PAG
12.23
Forward P/E
HD
20.17
PAG
12.02
P/B Ratio
HD
25.57
PAG
2.03
P/S Ratio
HD
1.99
PAG
0.35
EV/EBITDA
HD
15.68
PAG
13.32

Profitability

Gross Margin
HD
33.32%
PAG
16.4%
Operating Margin
HD
10.08%
PAG
3.35%
Profit Margin
HD
8.6%
PAG
2.94%
ROE
HD
145.54%
PAG
17.05%
ROA
HD
12.98%
PAG
4.62%

Growth

Revenue Growth
HD
-3.8%
PAG
-3.1%
Earnings Growth
HD
-14.2%
PAG
-19.1%

Financial Health

Debt/Equity
HD
5.14
PAG
1.58
Current Ratio
HD
1.06
PAG
0.99
Quick Ratio
HD
0.21
PAG
0.18

Dividends

Dividend Yield
HD
2.83%
PAG
3.47%
Payout Ratio
HD
64.65%
PAG
36.66%

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
PAG NEUTRAL

PAG presents a stable but stagnating profile, characterized by a Piotroski F-Score of 6/9 indicating stable financial health. While the stock trades near its Graham Number ($163.41), it is significantly above its growth-based intrinsic value ($98.21), suggesting the market is pricing in stability rather than growth. Negative YoY revenue (-3.10%) and earnings (-19.10%) growth are primary concerns, though these are offset by a very low P/E ratio (12.23) relative to the sector average. The overall outlook is tempered by bearish technical trends and insider selling.

Strengths
Low valuation relative to sector (P/E 12.23 vs Sector Avg 31.83)
Strong Return on Equity (ROE) of 17.05%
Diversified revenue streams across Retail Automotive, Commercial Trucks, and PTS investment
Risks
Negative YoY earnings growth (-19.10%) and revenue growth (-3.10%)
Poor short-term liquidity indicated by a Quick Ratio of 0.18
Regulatory risk in the UK regarding EV mandates and emissions penalties

Compare Another Pair

HD vs PAG: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and Penske Automotive Group, Inc. (PAG) 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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