HD vs. LOW, COST, BABA, PDD, MCD, WMT, BKNG, TJX, MELI, and SBUX
Should you be buying Home Depot stock or one of its competitors? The main competitors of Home Depot include Lowe's Companies (LOW), Costco Wholesale (COST), Alibaba Group (BABA), PDD (PDD), McDonald's (MCD), Walmart (WMT), Booking (BKNG), TJX Companies (TJX), MercadoLibre (MELI), and Starbucks (SBUX). These companies are all part of the "retail/wholesale" sector.
Home Depot (NYSE:HD) and Lowe's Companies (NYSE:LOW) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their community ranking, dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability, risk and media sentiment.
Home Depot has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Lowe's Companies has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.
Home Depot has higher revenue and earnings than Lowe's Companies. Lowe's Companies is trading at a lower price-to-earnings ratio than Home Depot, indicating that it is currently the more affordable of the two stocks.
In the previous week, Lowe's Companies had 26 more articles in the media than Home Depot. MarketBeat recorded 67 mentions for Lowe's Companies and 41 mentions for Home Depot. Home Depot's average media sentiment score of 0.65 beat Lowe's Companies' score of 0.42 indicating that Home Depot is being referred to more favorably in the media.
Home Depot currently has a consensus price target of $377.46, suggesting a potential upside of 14.83%. Lowe's Companies has a consensus price target of $251.33, suggesting a potential upside of 16.70%. Given Lowe's Companies' higher probable upside, analysts clearly believe Lowe's Companies is more favorable than Home Depot.
Home Depot pays an annual dividend of $9.00 per share and has a dividend yield of 2.7%. Lowe's Companies pays an annual dividend of $4.40 per share and has a dividend yield of 2.0%. Home Depot pays out 60.4% of its earnings in the form of a dividend. Lowe's Companies pays out 35.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Home Depot received 315 more outperform votes than Lowe's Companies when rated by MarketBeat users. Likewise, 71.53% of users gave Home Depot an outperform vote while only 69.81% of users gave Lowe's Companies an outperform vote.
70.9% of Home Depot shares are owned by institutional investors. Comparatively, 74.1% of Lowe's Companies shares are owned by institutional investors. 0.1% of Home Depot shares are owned by insiders. Comparatively, 0.3% of Lowe's Companies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Home Depot has a net margin of 9.79% compared to Lowe's Companies' net margin of 8.46%. Home Depot's return on equity of 1,056.67% beat Lowe's Companies' return on equity.
Summary
Home Depot beats Lowe's Companies on 14 of the 20 factors compared between the two stocks.
Get Home Depot News Delivered to You Automatically
Sign up to receive the latest news and ratings for HD and its competitors with MarketBeat's FREE daily newsletter.
This chart shows the number of new MarketBeat users adding HD and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
Home Depot Competitors List
Related Companies and Tools
