LOW vs. HD, BKNG, TJX, CMG, MELI, PDD, SBUX, TGT, MCD, and CVS
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), Chipotle Mexican Grill (CMG), MercadoLibre (MELI), PDD (PDD), Starbucks (SBUX), Target (TGT), McDonald's (MCD), and CVS Health (CVS). 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 superior stock? We will contrast the two companies based on the strength of their media sentiment, profitability, earnings, valuation, community ranking, institutional ownership, analyst recommendations, dividends and risk.
Lowe's Companies presently has a consensus target price of $252.67, suggesting a potential upside of 9.17%. Home Depot has a consensus target price of $375.19, suggesting a potential upside of 10.12%. Given Home Depot's stronger consensus rating and higher possible upside, analysts plainly believe Home Depot is more favorable than Lowe's Companies.
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 2.6%. 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.
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 insiders. Comparatively, 0.1% of Home Depot shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
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.
In the previous week, Home Depot had 23 more articles in the media than Lowe's Companies. MarketBeat recorded 44 mentions for Home Depot and 21 mentions for Lowe's Companies. Lowe's Companies' average media sentiment score of 0.52 beat Home Depot's score of 0.33 indicating that Lowe's Companies is being referred to more favorably in the media.
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 310 more outperform votes than Lowe's Companies when rated by MarketBeat users. Likewise, 71.56% of users gave Home Depot an outperform vote while only 70.02% of users gave Lowe's Companies an outperform vote.
Lowe's Companies has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Home Depot has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.
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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