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HD vs REAL

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
REAL
The RealReal, Inc.
NEUTRAL
Price
$12.08
Market Cap
$1.44B
Sector
Consumer Cyclical
AI Confidence
80%

Valuation

P/E Ratio
HD
23.1
REAL
--
Forward P/E
HD
20.17
REAL
59.02
P/B Ratio
HD
25.57
REAL
-3.44
P/S Ratio
HD
1.99
REAL
2.07
EV/EBITDA
HD
15.68
REAL
195.02

Profitability

Gross Margin
HD
33.32%
REAL
74.59%
Operating Margin
HD
10.08%
REAL
3.18%
Profit Margin
HD
8.6%
REAL
-6.03%
ROE
HD
145.54%
REAL
--
ROA
HD
12.98%
REAL
-3.61%

Growth

Revenue Growth
HD
-3.8%
REAL
18.3%
Earnings Growth
HD
-14.2%
REAL
--

Financial Health

Debt/Equity
HD
5.14
REAL
--
Current Ratio
HD
1.06
REAL
0.86
Quick Ratio
HD
0.21
REAL
0.66

Dividends

Dividend Yield
HD
2.83%
REAL
--
Payout Ratio
HD
64.65%
REAL
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
REAL NEUTRAL

The RealReal exhibits a critical divergence between fundamental health and growth momentum. The Piotroski F-Score of 2/9 indicates severe financial weakness, compounded by a negative Price/Book ratio (-3.44) suggesting negative shareholders' equity and a Current Ratio (0.86) that signals liquidity risk. However, the company shows strong operational recovery with 18.3% YoY revenue growth and a significant positive shift in EPS trajectory. While analysts maintain a 'strong_buy' rating with a target of $18.19, the bearish insider sentiment and poor deterministic health scores necessitate a cautious approach.

Strengths
Strong Gross Margin of 74.59%
Robust Revenue Growth (18.3% YoY and 18.33% Q/Q)
Significant EPS recovery with 109.7% YoY growth
Risks
Severe financial health indicated by Piotroski F-Score of 2/9
Negative shareholders' equity (Price/Book: -3.44)
Liquidity concerns with Current Ratio (0.86) and Quick Ratio (0.66) below 1.0

Compare Another Pair

HD vs REAL: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and The RealReal, Inc. (REAL) 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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