HD vs. LOW, WMT, COST, BABA, MCD, CVS, SBUX, PDD, TJX, and AMZN
Should you be buying Home Depot stock or one of its competitors? The main competitors of Home Depot include Lowe's Companies (LOW), Walmart (WMT), Costco Wholesale (COST), Alibaba Group (BABA), McDonald's (MCD), CVS Health (CVS), Starbucks (SBUX), Pinduoduo (PDD), TJX Companies (TJX), and Amazon.com (AMZN). These companies are all part of the "retail/wholesale" sector.
Home Depot vs.
Home Depot (NYSE:HD) and Lowe's Companies (NYSE:LOW) are both large-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, community ranking, risk, institutional ownership, profitability, valuation, earnings, media sentiment and analyst recommendations.
Home Depot currently has a consensus price target of $346.29, suggesting a potential upside of 6.88%. Lowe's Companies has a consensus price target of $231.35, suggesting a potential upside of 8.84%. Given Lowe's Companies' higher probable upside, analysts plainly believe Lowe's Companies is more favorable than Home Depot.
In the previous week, Home Depot had 11 more articles in the media than Lowe's Companies. MarketBeat recorded 22 mentions for Home Depot and 11 mentions for Lowe's Companies. Lowe's Companies' average media sentiment score of 0.45 beat Home Depot's score of 0.24 indicating that Lowe's Companies is being referred to more favorably in the news media.
Home Depot received 298 more outperform votes than Lowe's Companies when rated by MarketBeat users. Likewise, 73.54% of users gave Home Depot an outperform vote while only 72.31% of users gave Lowe's Companies an outperform vote.
68.7% of Home Depot shares are owned by institutional investors. Comparatively, 74.0% of Lowe's Companies shares are owned by institutional investors. 0.2% of Home Depot shares are owned by insiders. Comparatively, 0.2% of Lowe's Companies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Home Depot has a net margin of 10.87% compared to Lowe's Companies' net margin of 6.97%. Lowe's Companies' return on equity of -103.72% beat Home Depot's return on equity.
Home Depot has higher revenue and earnings than Lowe's Companies. Home Depot is trading at a lower price-to-earnings ratio than Lowe's Companies, indicating that it is currently the more affordable of the two stocks.
Home Depot pays an annual dividend of $7.60 per share and has a dividend yield of 2.3%. Lowe's Companies pays an annual dividend of $4.20 per share and has a dividend yield of 2.0%. Home Depot pays out 45.8% of its earnings in the form of a dividend. Lowe's Companies pays out 41.1% 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 has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Lowe's Companies has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Summary
Home Depot beats Lowe's Companies on 12 of the 20 factors compared between the two stocks.
New MarketBeat Followers Over Time
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.
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.
Home Depot Competitors List
