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HD vs RECT

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
RECT
Rectitude Holdings Ltd
BULLISH
Price
$1.62
Market Cap
$23.5M
Sector
Consumer Cyclical
AI Confidence
75%

Valuation

P/E Ratio
HD
23.1
RECT
8.1
Forward P/E
HD
20.17
RECT
--
P/B Ratio
HD
25.57
RECT
1.1
P/S Ratio
HD
1.99
RECT
0.51
EV/EBITDA
HD
15.68
RECT
6.31

Profitability

Gross Margin
HD
33.32%
RECT
31.94%
Operating Margin
HD
10.08%
RECT
11.19%
Profit Margin
HD
8.6%
RECT
8.13%
ROE
HD
145.54%
RECT
14.9%
ROA
HD
12.98%
RECT
4.97%

Growth

Revenue Growth
HD
-3.8%
RECT
10.8%
Earnings Growth
HD
-14.2%
RECT
125.0%

Financial Health

Debt/Equity
HD
5.14
RECT
0.35
Current Ratio
HD
1.06
RECT
2.25
Quick Ratio
HD
0.21
RECT
1.59

Dividends

Dividend Yield
HD
2.83%
RECT
--
Payout Ratio
HD
64.65%
RECT
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
RECT BULLISH

RECT exhibits strong fundamental health with a Piotroski F-Score of 7/9 and a conservative Debt/Equity ratio of 0.35. The stock is significantly undervalued, trading at $1.62 against a Graham Number of $2.57 and an intrinsic value of $5.90. Despite a devastating one-year price decline of 59.4%, explosive earnings growth (125% YoY) and a recent short-term price recovery suggest a potential value reversal. The company significantly outperforms sector averages in profitability and leverage, though it remains a high-risk micro-cap.

Strengths
Strong Piotroski F-Score (7/9) indicating high financial health
Explosive earnings growth (125% YoY and 135.8% Q/Q)
Deeply undervalued relative to Graham Number ($2.57) and Intrinsic Value ($5.90)
Risks
Severe long-term price depreciation (-59.4% over 1 year)
Micro-cap liquidity and volatility risk ($0.02B Market Cap)
Low insider sentiment (40/100) suggesting lack of internal conviction

Compare Another Pair

HD vs RECT: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and Rectitude Holdings Ltd (RECT) 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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