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.
Home Depot (NYSE:HD) and Lowe's Companies (NYSE:LOW) are both large-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, media sentiment, community ranking, earnings, dividends, analyst recommendations, valuation and profitability.
Home Depot pays an annual dividend of $9.00 per share and has a dividend yield of 2.7%. Lowe's Companies pays an annual dividend of $4.40 per share and has a dividend yield of 1.9%. 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 increased its dividend for 15 consecutive years and Lowe's Companies has increased its dividend for 52 consecutive years.
70.9% of Home Depot shares are held by institutional investors. Comparatively, 74.1% of Lowe's Companies shares are held by institutional investors. 0.1% of Home Depot shares are held by company insiders. Comparatively, 0.3% of Lowe's Companies shares are held 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.
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 currently has a consensus target price of $375.96, suggesting a potential upside of 12.20%. Lowe's Companies has a consensus target price of $252.52, suggesting a potential upside of 9.85%. Given Lowe's Companies' stronger consensus rating and higher probable upside, research analysts clearly believe Home Depot is more favorable than Lowe's Companies.
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 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.
In the previous week, Home Depot had 28 more articles in the media than Lowe's Companies. MarketBeat recorded 46 mentions for Home Depot and 18 mentions for Lowe's Companies. Home Depot's average media sentiment score of 0.67 beat Lowe's Companies' score of 0.54 indicating that Lowe's Companies is being referred to more favorably in the news media.
Home Depot has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Lowe's Companies has a beta of 1.13, suggesting 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.
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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