HD vs. LOW, COST, MCD, BABA, WMT, PDD, BKNG, TJX, SBUX, and CMG
Should you be buying Home Depot stock or one of its competitors? The main competitors of Home Depot include Lowe's Companies (LOW), Costco Wholesale (COST), McDonald's (MCD), Alibaba Group (BABA), Walmart (WMT), PDD (PDD), Booking (BKNG), TJX Companies (TJX), Starbucks (SBUX), 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 better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership, media sentiment, community ranking and earnings.
Home Depot currently has a consensus target price of $375.96, indicating a potential upside of 9.66%. Lowe's Companies has a consensus target price of $252.52, indicating a potential upside of 8.78%. Given Home Depot's stronger consensus rating and higher probable upside, equities analysts clearly believe Home Depot is more favorable than Lowe's Companies.
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.
In the previous week, Home Depot had 19 more articles in the media than Lowe's Companies. MarketBeat recorded 37 mentions for Home Depot and 18 mentions for Lowe's Companies. Lowe's Companies' average media sentiment score of 0.78 beat Home Depot's score of 0.40 indicating that Lowe's Companies is being referred to more favorably in the news media.
Home Depot has a beta of 1.01, suggesting that its share price is 1% more 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.
70.9% of Home Depot shares are owned by institutional investors. Comparatively, 74.1% of Lowe's Companies shares are owned by institutional investors. 0.1% 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Home Depot received 309 more outperform votes than Lowe's Companies when rated by MarketBeat users. Likewise, 71.58% of users gave Home Depot an outperform vote while only 70.05% of users gave Lowe's Companies an outperform vote.
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.
Home Depot pays an annual dividend of $9.00 per share and has a dividend yield of 2.6%. 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.
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 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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