The Home Depot Inc (HD)vsLowe's Companies Inc (LOW)
HD
The Home Depot Inc
$320.75
-2.27%
CONSUMER CYCLICAL · Cap: $339.90B
LOW
Lowe's Companies Inc
$224.63
-2.21%
CONSUMER CYCLICAL · Cap: $135.81B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 91% more annual revenue ($164.68B vs $86.29B). HD leads profitability with a 8.6% profit margin vs 7.7%. LOW appears more attractively valued with a PEG of 2.52. HD earns a higher WallStSmart Score of 45/100 (D+).
HD
Hold45
out of 100
Grade: D+
LOW
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-238.9%
Fair Value
$96.83
Current Price
$320.75
$223.92 premium
Margin of Safety
-185.3%
Fair Value
$80.51
Current Price
$224.63
$144.12 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 146 in profit
Safe zone — low bankruptcy risk
Generating 2.3B in free cash flow
Conservative balance sheet, low leverage
Large-cap with strong market position
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Trading at 24.9x book value
Revenue declined 3.8%
ROE of 0.0% — below average capital efficiency
7.7% margin — thin
Expensive relative to growth rate
Earnings declined 10.8%
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. Revenue growth of 10.9% demonstrates continued momentum.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : LOW
The primary concerns for LOW are Return on Equity, Profit Margin, PEG Ratio.
Key Dynamics to Monitor
HD carries more volatility with a beta of 1.04 — expect wider price swings.
LOW is growing revenue faster at 10.9% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (45/100 vs 44/100). Both earn "Hold" 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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