The Home Depot Inc (HD)vsLowe's Companies Inc (LOW)
HD
The Home Depot Inc
$310.78
+2.08%
CONSUMER CYCLICAL · Cap: $336.21B
LOW
Lowe's Companies Inc
$210.74
+2.27%
CONSUMER CYCLICAL · Cap: $123.46B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 88% more annual revenue ($166.59B vs $88.43B). HD leads profitability with a 8.4% profit margin vs 7.5%. LOW appears more attractively valued with a PEG of 1.44. HD earns a higher WallStSmart Score of 51/100 (C-).
HD
Buy51
out of 100
Grade: C-
LOW
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.0%
Fair Value
$212.07
Current Price
$310.78
$98.71 premium
Margin of Safety
-60.0%
Fair Value
$139.97
Current Price
$210.74
$70.77 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 2.8B in free cash flow
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 22.3x book value
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
7.5% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bull Case : LOW
The strongest argument for LOW centers on Debt/Equity, Market Cap, Free Cash Flow. Revenue growth of 10.3% demonstrates continued momentum. PEG of 1.44 suggests the stock is reasonably priced for its growth.
Bear Case : HD
The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.
Bear Case : LOW
The primary concerns for LOW are Altman Z-Score, Return on Equity, Profit Margin.
Key Dynamics to Monitor
HD carries more volatility with a beta of 0.97 — expect wider price swings.
LOW is growing revenue faster at 10.3% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (51/100 vs 50/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
The Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
Lowe's Companies Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.
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