Home Depot (NYSE:HD) and Wisdom Homes of America (OTCMKTS:WOFA) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Dividends

Home Depot pays an annual dividend of $4.12 per share and has a dividend yield of 2.3%. Wisdom Homes of America does not pay a dividend. Home Depot pays out 55.2% of its earnings in the form of a dividend. Home Depot has increased its dividend for 5 consecutive years.

Institutional and Insider Ownership

69.4% of Home Depot shares are owned by institutional investors. 0.3% of Home Depot shares are owned by company insiders. Comparatively, 33.3% of Wisdom Homes of America shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Home Depot has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Wisdom Homes of America has a beta of 2.59, indicating that its share price is 159% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Home Depot and Wisdom Homes of America, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Home Depot 0 7 19 0 2.73
Wisdom Homes of America 0 0 0 0 N/A

Home Depot currently has a consensus target price of $205.04, indicating a potential upside of 14.55%. Given Home Depot’s higher probable upside, research analysts clearly believe Home Depot is more favorable than Wisdom Homes of America.

Earnings & Valuation

This table compares Home Depot and Wisdom Homes of America’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Home Depot $100.90 billion 2.03 $8.63 billion $7.46 23.99
Wisdom Homes of America N/A N/A N/A N/A N/A

Home Depot has higher revenue and earnings than Wisdom Homes of America.

Profitability

This table compares Home Depot and Wisdom Homes of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Home Depot 9.45% 522.68% 22.04%
Wisdom Homes of America N/A N/A N/A

Summary

Home Depot beats Wisdom Homes of America on 9 of the 12 factors compared between the two stocks.

About Home Depot

The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and d├ęcor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers. The company also offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds; and professional installation in various categories sold through its in-home sales programs, such as roofing, siding, windows, cabinet refacing, furnaces, and central air systems, as well as acts as a contractor to provide installation services to its do-it-for-me customers through third-party installers. In addition, it provides tool and equipment rental services. The company primarily serves home owners; and professional renovators/remodelers, general contractors, handymen, property managers, building service contractors, and specialty tradesmen, such as installers. It also sells its products through online. As of January 28, 2018, the company operated 2,284 stores, including 1,980 in the United States, including the Commonwealth of Puerto Rico, and the territories of the U.S. Virgin Islands and Guam; 182 in Canada; and 122 in Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.

About Wisdom Homes of America

Wisdom Homes of America, Inc. engages in opening and operating manufactured home retail centers for homebuyers in Texas. The company was formerly known as SearchCore, Inc. and changed its name to Wisdom Homes of America, Inc. in March 2015. Wisdom Homes of America, Inc. was founded in 2003 and is headquartered in Tyler, Texas.

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