The Home Depot Inc (HD)vsLowe's Companies Inc (LOW)
HD
The Home Depot Inc
$302.55
+0.01%
CONSUMER CYCLICAL · Cap: $304.98B
LOW
Lowe's Companies Inc
$194.14
+0.05%
CONSUMER CYCLICAL · Cap: $110.43B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 87% more annual revenue ($169.18B vs $90.43B). HD leads profitability with a 8.4% profit margin vs 7.3%. LOW appears more attractively valued with a PEG of 1.33. HD earns a higher WallStSmart Score of 58/100 (C).
HD
Buy58
out of 100
Grade: C
LOW
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-41.8%
Fair Value
$217.78
Current Price
$302.55
$84.77 premium
Margin of Safety
-34.3%
Fair Value
$144.62
Current Price
$194.14
$49.52 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 86 in profit
Safe zone — low bankruptcy risk
Generating 4.5B in free cash flow
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Generating 3.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 18.2x book value
4.6% earnings growth
Weak financial health signals
0.0% earnings growth
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
7.3% margin — thin
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, P/E Ratio. PEG of 1.33 suggests the stock is reasonably priced for its growth.
Bear Case : HD
The primary concerns for HD are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 3.77 is elevated, increasing financial risk.
Bear Case : LOW
The primary concerns for LOW are EPS Growth, Altman Z-Score, Return on Equity.
Key Dynamics to Monitor
HD carries more volatility with a beta of 0.95 — expect wider price swings.
LOW is growing revenue faster at 8.3% — sustainability is the question.
HD generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (58/100 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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