HD vs. LOW, BLDR, FND, JCTC, WMT, COST, BABA, MCD, BKNG, and TJX
Should you be buying Home Depot stock or one of its competitors? The main competitors of Home Depot include Lowe's Companies (LOW), Builders FirstSource (BLDR), Floor & Decor (FND), Jewett-Cameron Trading (JCTC), Walmart (WMT), Costco Wholesale (COST), Alibaba Group (BABA), McDonald's (MCD), Booking (BKNG), and TJX Companies (TJX). These companies are all part of the "retail/wholesale" sector.
Home Depot vs.
Lowe's Companies (NYSE:LOW) and Home Depot (NYSE:HD) are both large-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, community ranking, dividends, analyst recommendations, earnings, media sentiment, institutional ownership and profitability.
In the previous week, Home Depot had 31 more articles in the media than Lowe's Companies. MarketBeat recorded 75 mentions for Home Depot and 44 mentions for Lowe's Companies. Home Depot's average media sentiment score of 1.22 beat Lowe's Companies' score of 1.07 indicating that Home Depot is being referred to more favorably in the news media.
Lowe's Companies currently has a consensus price target of $271.12, indicating a potential upside of 20.41%. Home Depot has a consensus price target of $426.77, indicating a potential upside of 16.45%. Given Lowe's Companies' higher probable upside, equities research analysts clearly believe Lowe's Companies is more favorable than Home Depot.
Lowe's Companies has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Home Depot has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
Home Depot has a net margin of 9.45% compared to Lowe's Companies' net margin of 8.19%. Home Depot's return on equity of 452.60% beat Lowe's Companies' return on equity.
Lowe's Companies pays an annual dividend of $4.80 per share and has a dividend yield of 2.1%. Home Depot pays an annual dividend of $9.20 per share and has a dividend yield of 2.5%. Lowe's Companies pays out 39.8% of its earnings in the form of a dividend. Home Depot pays out 62.4% 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. Lowe's Companies has increased its dividend for 53 consecutive years and Home Depot has increased its dividend for 16 consecutive years.
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.
74.1% of Lowe's Companies shares are owned by institutional investors. Comparatively, 70.9% of Home Depot shares are owned by institutional investors. 0.3% of Lowe's Companies shares are owned by company insiders. Comparatively, 0.1% of Home Depot shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Home Depot received 319 more outperform votes than Lowe's Companies when rated by MarketBeat users. Likewise, 71.44% of users gave Home Depot an outperform vote while only 69.43% of users gave Lowe's Companies an outperform vote.
Summary
Home Depot beats Lowe's Companies on 17 of the 22 factors compared between the two stocks.
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New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding {thisCompany.Symbol} and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
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.
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This page (NYSE:HD) was last updated on 6/10/2025 by MarketBeat.com Staff
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