Stock Comparison

GM vs HD

General Motors Co vs Home Depot Inc

Who's the better investment? Let's break it down.

The Verdict

GM takes this one.

This one's close — only 0.4 points separating them. GM wins by a hair, but both deserve a closer look.

Winner
GM

General Motors Co

0.9

out of 10

Distressed
HD

Home Depot Inc

0.5

out of 10

Distressed

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Valuation

GM

Metric

HD

$67.9B

Market Cap

$307.8B
26.7

P/E Ratio

Lower may indicate better value

21.7
15.5

Forward P/E

29.1
1.1

Price/Book

64.7
3.9

EV/EBITDA

20.8

Profitability & Growth

GM

Metric

HD

1.4%

Profit Margin

8.6%
5.9%

Gross Margin

33.3%
0.9%

Operating Margin

12.7%
4.0%

Return on Equity

130.0%
0.9%

Return on Assets

13.8%
-2.0%

Revenue Growth

3.2%
$2.58

EPS

$14.24

Financial Health

GM

Metric

HD

2.1

Debt-to-Equity

Lower = less leverage

4.4
1.2

Current Ratio

Above 1.0 is healthy

1.1
1.3

Beta

Lower = less volatile

1.0
0.9%

Dividend Yield

3.0%

Risk Comparison

GM

Overall
Moderate
Financial
Medium
Market
Medium
Competitive
High
Execution
Medium
Regulatory
Medium

What Could Go Wrong

The biggest risk is the prolonged unprofitability of the EV segment. If EV losses continue to widen despite increased production, it could significantly erode overall company profitability, strain cap...

Red Flags

  • 🚩Continued significant losses from the EV segment without a clear path to profitability
  • 🚩Material negative revisions to full-year guidance in subsequent quarters
  • 🚩Loss of market share in either ICE or EV segments to competitors

HD

Overall
Moderate
Financial
Medium
Market
Medium
Competitive
Medium
Execution
Medium
Regulatory
Low

What Could Go Wrong

Continued pressure on housing affordability and high interest rates could further dampen discretionary home improvement spending and professional remodeler activity, leading to sustained low-single-di...

Red Flags

  • 🚩Customer transactions declined in Q1 FY2026, indicating volume weakness despite higher average ticke...
  • 🚩YoY adjusted EPS declined by 3.7% in Q1 FY2026, signaling ongoing margin pressure.
  • 🚩Q1 FY2026 growth was primarily acquisition-driven (SRS and GMS) rather than organic, with comparable...

Competitive Moat

GM

Rating

🛡️ Narrow

Trend

➡️ Stable to slightly Expanding. While brand and scale are somewhat stable, investments in Ultium and Cruise aim to expand the moat into new, high-growth areas of mobility.

Brand PowerCost Advantages (Scale)Intangible Assets/IP (Ultium platform, Cruise technology)

HD

Rating

🛡️ Wide

Trend

➡️ Stable

Brand PowerCost AdvantagesEfficient ScaleSwitching Costs

Investment Thesis

GM0.9/10

General Motors represents a value play in the automotive sector, leveraging its highly profitable internal combustion engine (ICE) business to aggressively fund a strategic pivot towards electric vehicles (EVs) and autonomous driving (AV) through its Ultium platform and Cruise subsidiary. Strong operational execution in its core business and improving financial metrics, coupled with a commitment t...

Full GM Analysis
HD0.5/10

If Home Depot continues to effectively integrate its Pro-focused acquisitions (like SRS and GMS), achieving sustained mid-single-digit revenue growth while leveraging its robust supply chain to maintain operating margins around 13%, then the company can solidify its market leadership in the professional contractor segment, driving stable EPS growth and attracting a stable P/E multiple, yielding mo...

Full HD Analysis

Price Targets & Strategy

Price Targets & Entry/Exit Strategy

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Growth Catalysts

Growth Catalysts Comparison

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Market Sentiment

Market Sentiment Analysis

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The Deep Dive

GM0.9/10

General Motors' Q1 2026 results demonstrated strong operational execution, with beats on adjusted EPS and revenue, and a significant 21.9% YoY increase in EBIT-Adjusted. The raised FY2026 guidance and a favorable tariff ruling further strengthen the near-term financial outlook, showing resilience despite reported EV segment losses of ~$1.1B. While the company's strategic pivot to EVs via Ultium and autonomous vehicles with Cruise offers significant long-term growth potential in high-TAM segments...

Full GM Analysis
HD0.5/10

Home Depot's mega-cap status ($309.35B) fundamentally precludes 10x growth within 3-5 years, as the total addressable market is mature and saturated, without disruptive technologies or significant untapped global expansion. Q1 FY2026 results showed a slight beat on revenue ($41.8B, +4.8% YoY) and adjusted EPS ($3.43), with modest comparable sales growth (+0.6%). However, adjusted EPS declined YoY (-3.7%), and growth remains acquisition-driven, not organic. While the absence of a fraud allegation...

Full HD Analysis

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Not Financial Advice

This comparison is for educational purposes only. We are not financial advisors. Always do your own research and consult a qualified financial advisor before making investment decisions.

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