LOW vs. HD, BKNG, TJX, SBUX, PDD, CVS, BABA, CMG, TGT, and MELI
Should you be buying Lowe's Companies stock or one of its competitors? The main competitors of Lowe's Companies include Home Depot (HD), Booking (BKNG), TJX Companies (TJX), Starbucks (SBUX), PDD (PDD), CVS Health (CVS), Alibaba Group (BABA), Chipotle Mexican Grill (CMG), Target (TGT), and MercadoLibre (MELI). These companies are all part of the "retail/wholesale" sector.
Lowe's Companies (NYSE:LOW) and Home Depot (NYSE:HD) are both large-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, media sentiment, community ranking, earnings, profitability, institutional ownership, dividends and risk.
Home Depot received 309 more outperform votes than Lowe's Companies when rated by MarketBeat users. Likewise, 71.61% of users gave Home Depot an outperform vote while only 70.05% of users gave Lowe's Companies an outperform vote.
Lowe's Companies pays an annual dividend of $4.40 per share and has a dividend yield of 1.9%. Home Depot pays an annual dividend of $9.00 per share and has a dividend yield of 2.7%. Lowe's Companies pays out 33.4% of its earnings in the form of a dividend. Home Depot pays out 59.6% 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 net margin of 9.92% compared to Lowe's Companies' net margin of 8.94%. Home Depot's return on equity of 1,452.22% beat Lowe's Companies' return on equity.
Lowe's Companies has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Home Depot has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Lowe's Companies currently has a consensus target price of $252.52, indicating a potential upside of 9.17%. Home Depot has a consensus target price of $375.96, indicating a potential upside of 12.52%. Given Home Depot's stronger consensus rating and higher probable upside, analysts plainly believe Home Depot is more favorable than Lowe's Companies.
In the previous week, Home Depot had 27 more articles in the media than Lowe's Companies. MarketBeat recorded 46 mentions for Home Depot and 19 mentions for Lowe's Companies. Lowe's Companies' average media sentiment score of 0.57 beat Home Depot's score of 0.45 indicating that Lowe's Companies is being referred to more favorably in the media.
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, large money managers and endowments believe a company will outperform the market over the long term.
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.
Summary
Home Depot beats Lowe's Companies on 15 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LOW 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.
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