HD vs. LOW, LL, BLDR, FND, JCTCF, WMT, COST, PDD, BABA, and MCD
Should you be buying Home Depot stock or one of its competitors? The main competitors of Home Depot include Lowe's Companies (LOW), LL Flooring (LL), Builders FirstSource (BLDR), Floor & Decor (FND), Jewett-Cameron Trading (JCTCF), Walmart (WMT), Costco Wholesale (COST), PDD (PDD), Alibaba Group (BABA), and McDonald's (MCD).
Lowe's Companies (NYSE:LOW) and Home Depot (NYSE:HD) are both large-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, community ranking, dividends, media sentiment, institutional ownership and valuation.
Lowe's Companies pays an annual dividend of $4.40 per share and has a dividend yield of 2.0%. Home Depot pays an annual dividend of $9.00 per share and has a dividend yield of 2.7%. Lowe's Companies pays out 35.3% of its earnings in the form of a dividend. Home Depot pays out 60.4% 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 52 consecutive years and Home Depot has increased its dividend for 15 consecutive years.
Lowe's Companies has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Home Depot has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
Lowe's Companies currently has a consensus price target of $251.33, suggesting a potential upside of 13.58%. Home Depot has a consensus price target of $377.46, suggesting a potential upside of 12.72%. Given Home Depot's higher probable upside, research analysts plainly believe Lowe's Companies is more favorable than Home Depot.
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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
In the previous week, Home Depot had 3 more articles in the media than Lowe's Companies. MarketBeat recorded 34 mentions for Home Depot and 31 mentions for Lowe's Companies. Home Depot's average media sentiment score of 0.61 beat Lowe's Companies' score of 0.53 indicating that Lowe's Companies is being referred to more favorably in the media.
Home Depot has a net margin of 9.79% compared to Home Depot's net margin of 8.46%. Lowe's Companies' return on equity of 1,056.67% beat Home Depot's return on equity.
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 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.
Summary
Home Depot beats Lowe's Companies on 14 of the 21 factors compared between the two stocks.
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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.
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