No connection

Search Results

HD vs RCL

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
RCL
Royal Caribbean Cruises Ltd.
BULLISH
Price
$252.87
Market Cap
$69.75B
Sector
Consumer Cyclical
AI Confidence
88%

Valuation

P/E Ratio
HD
23.1
RCL
17.01
Forward P/E
HD
20.17
RCL
17.7
P/B Ratio
HD
25.57
RCL
6.82
P/S Ratio
HD
1.99
RCL
4.0
EV/EBITDA
HD
15.68
RCL
14.28

Profitability

Gross Margin
HD
33.32%
RCL
50.28%
Operating Margin
HD
10.08%
RCL
33.14%
Profit Margin
HD
8.6%
RCL
23.32%
ROE
HD
145.54%
RCL
46.68%
ROA
HD
12.98%
RCL
7.46%

Growth

Revenue Growth
HD
-3.8%
RCL
5.2%
Earnings Growth
HD
-14.2%
RCL
36.3%

Financial Health

Debt/Equity
HD
5.14
RCL
2.04
Current Ratio
HD
1.06
RCL
0.17
Quick Ratio
HD
0.21
RCL
0.07

Dividends

Dividend Yield
HD
2.83%
RCL
1.58%
Payout Ratio
HD
64.65%
RCL
20.52%

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
RCL BULLISH

Royal Caribbean (RCL) presents a compelling investment case supported by strong profitability, accelerating earnings growth, and a significant valuation discount relative to peers despite superior fundamentals. The company has delivered consistent earnings beats over the past two years, with a remarkable recovery in margins—ROE of 46.68% and operating margin of 33.14% reflect best-in-class capital efficiency. While near-term price momentum is weak (-18.7% over 1M), the stock trades at a steep discount to its $336.78 analyst target, implying 33% upside. Bearish insider activity and elevated leverage are concerns, but robust free cash flow generation and disciplined capital allocation underpin long-term value creation.

Strengths
Exceptional profitability: ROE of 46.68% and operating margin of 33.14% significantly outperform sector averages (avg ROE: 45.75%, avg op margin: ~20%)
Strong earnings momentum: YoY EPS growth of 36.3%, with Q/Q EPS up 41.8%, indicating accelerating recovery in demand and pricing power
Consistent earnings outperformance: 3 out of last 4 quarters beat estimates, with average surprise of 5.2% and several beats exceeding 15%
Risks
Elevated leverage: Debt/Equity of 2.04 exceeds sector average of 1.39, increasing refinancing and interest rate risk
Severe liquidity constraints: Current ratio of 0.17 and quick ratio of 0.07 suggest near-term cash flow dependency on operations
Bearish insider sentiment: $11.95M in insider sales over last 6 months with zero buys, signaling caution at current price levels

Compare Another Pair

HD vs RCL: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and Royal Caribbean Cruises Ltd. (RCL) 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.

Home
Terminal
AI Chat
Markets
Profile