LOW vs. HD, PDD, BKNG, TJX, SBUX, CVS, BABA, MELI, TGT, and CMG
Should you be buying Lowe's Companies stock or one of its competitors? The main competitors of Lowe's Companies include Home Depot (HD), PDD (PDD), Booking (BKNG), TJX Companies (TJX), Starbucks (SBUX), CVS Health (CVS), Alibaba Group (BABA), MercadoLibre (MELI), Target (TGT), and Chipotle Mexican Grill (CMG). 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 investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, media sentiment, risk, earnings, valuation, institutional ownership, community ranking and dividends.
In the previous week, Home Depot had 6 more articles in the media than Lowe's Companies. MarketBeat recorded 38 mentions for Home Depot and 32 mentions for Lowe's Companies. Lowe's Companies' average media sentiment score of 0.53 beat Home Depot's score of 0.47 indicating that Home Depot is being referred to more favorably in the media.
68.3% of Home Depot shares are owned by institutional investors. Comparatively, 71.9% of Lowe's Companies shares are owned by institutional investors. 0.2% 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, hedge funds and endowments believe a stock will outperform the market over the long term.
Home Depot currently has a consensus price target of $364.75, indicating a potential downside of 1.93%. Lowe's Companies has a consensus price target of $246.79, indicating a potential upside of 1.36%. Given Home Depot's higher probable upside, analysts clearly believe Lowe's Companies is more favorable than Home Depot.
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.
Home Depot has a net margin of 9.92% compared to Home Depot's net margin of 8.94%. Lowe's Companies' return on equity of 1,452.22% beat Home Depot's return on equity.
Home Depot pays an annual dividend of $9.00 per share and has a dividend yield of 2.4%. Lowe's Companies pays an annual dividend of $4.40 per share and has a dividend yield of 1.8%. Home Depot pays out 59.6% of its earnings in the form of a dividend. Lowe's Companies pays out 33.4% 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. Home Depot has raised its dividend for 15 consecutive years and Lowe's Companies has raised its dividend for 52 consecutive years.
Home Depot received 298 more outperform votes than Lowe's Companies when rated by MarketBeat users. Likewise, 71.60% of users gave Home Depot an outperform vote while only 70.22% of users gave Lowe's Companies an outperform vote.
Home Depot has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Lowe's Companies has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.
Summary
Home Depot beats Lowe's Companies on 15 of the 21 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.
Skip ChartThis 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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