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HD vs RAVE

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
RAVE
Rave Restaurant Group, Inc.
BEARISH
Price
$2.47
Market Cap
$35.1M
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
HD
23.1
RAVE
11.76
Forward P/E
HD
20.17
RAVE
-16.47
P/B Ratio
HD
25.57
RAVE
2.26
P/S Ratio
HD
1.99
RAVE
2.84
EV/EBITDA
HD
15.68
RAVE
6.71

Profitability

Gross Margin
HD
33.32%
RAVE
72.99%
Operating Margin
HD
10.08%
RAVE
24.39%
Profit Margin
HD
8.6%
RAVE
23.04%
ROE
HD
145.54%
RAVE
19.45%
ROA
HD
12.98%
RAVE
12.95%

Growth

Revenue Growth
HD
-3.8%
RAVE
6.0%
Earnings Growth
HD
-14.2%
RAVE
0.0%

Financial Health

Debt/Equity
HD
5.14
RAVE
0.03
Current Ratio
HD
1.06
RAVE
8.5
Quick Ratio
HD
0.21
RAVE
7.99

Dividends

Dividend Yield
HD
2.83%
RAVE
--
Payout Ratio
HD
64.65%
RAVE
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
RAVE BEARISH

RAVE presents a contradictory profile: a rock-solid balance sheet paired with deteriorating earnings quality. With a Piotroski F-Score of 4/9 (Stable) and a current price of $2.47 exceeding both the Graham Number ($2.27) and Intrinsic Value ($1.47), the stock is fundamentally overvalued. The negative Forward P/E and a history of significant earnings misses suggest a downward trajectory in profitability. Despite exceptionally low debt, the lack of growth and bearish technicals indicate limited upside potential.

Strengths
Extremely low Debt/Equity ratio (0.03)
High liquidity with a Current Ratio of 8.50
Strong Profit Margin (23.04%) and Gross Margin (72.99%)
Risks
Negative Forward P/E (-16.47) suggests expected future losses
Poor earnings track record with an average surprise of -153.75%
Current price trades at a premium to both Graham and Intrinsic values

Compare Another Pair

HD vs RAVE: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and Rave Restaurant Group, Inc. (RAVE) 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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