Lowe's Companies Inc (LOW)vsRH (RH)
LOW
Lowe's Companies Inc
$210.74
-0.27%
CONSUMER CYCLICAL · Cap: $115.86B
RH
RH
$146.63
-4.32%
CONSUMER CYCLICAL · Cap: $2.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Lowe's Companies Inc generates 2481% more annual revenue ($88.43B vs $3.43B). LOW leads profitability with a 7.5% profit margin vs 3.0%. RH appears more attractively valued with a PEG of 0.79. RH earns a higher WallStSmart Score of 61/100 (C+).
LOW
Hold50
out of 100
Grade: D+
RH
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-50.6%
Fair Value
$139.97
Current Price
$210.74
$70.77 premium
Margin of Safety
+4.3%
Fair Value
$208.94
Current Price
$146.63
$62.31 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Generating 2.8B in free cash flow
Earnings expanding 112.5% YoY
Every $100 of equity generates 30 in profit
Growing faster than its price suggests
Areas to Watch
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
7.5% margin — thin
Weak financial health signals
Moderate valuation
3.0% margin — thin
Operating margin of 0.3%
Trading at 45.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : LOW
The strongest argument for LOW centers on Debt/Equity, Market Cap, P/E Ratio. Revenue growth of 10.3% demonstrates continued momentum. PEG of 1.36 suggests the stock is reasonably priced for its growth.
Bull Case : RH
The strongest argument for RH centers on EPS Growth, Return on Equity, PEG Ratio. PEG of 0.79 suggests the stock is reasonably priced for its growth.
Bear Case : LOW
The primary concerns for LOW are Altman Z-Score, Return on Equity, Profit Margin.
Bear Case : RH
The primary concerns for RH are P/E Ratio, Profit Margin, Operating Margin. Debt-to-equity of 65.50 is elevated, increasing financial risk. Thin 3.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
RH carries more volatility with a beta of 1.90 — expect wider price swings.
LOW is growing revenue faster at 10.3% — sustainability is the question.
LOW generates stronger free cash flow (2.8B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RH scores higher overall (61/100 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.
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.
Visit Website →RH
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
RH, is a home furnishings retailer. The company is headquartered in Corte Madera, California.
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