Amazon vs Home Depot

This page compares Amazon.com Inc. and Home Depot, Inc., The, examining business models, financial performance, and market context in clear, neutral terms for readers. Educational content, not financial advice.

This page compares Amazon.com Inc. and Home Depot, Inc., The, examining business models, financial performance, and market context in clear, neutral terms for readers. Educational content, not financi...

Comparison Snapshot

Key Financial Metrics

AMZN

Metric

HD

$2.55T

Market Cap

$384.80B

18.23%

Potential Profit

2.59%

Buy

Analyst Rating

Buy

Why It's Moving

Analysts Boost Amazon Price Targets, Eyeing Explosive Breakout in 2026

AWS growth accelerated to 20% in the latest quarter from prior declines to 17%, with operating margins jumping to 34.6%, signaling robust cloud and AI momentum.
Wedbush highlights breakout potential from automation, new AI-powered Alexa features, and Project Kuiper monetization kicking off soon.
Potential Prime subscription price hike in 2026, paired with strong retail and advertising trends, positions Amazon for outsized gains.

Sentiment:

🐃Bullish

Home Depot confronts housing headwinds and new competition amid AI innovation push.

Cautious 2026 outlook projects flat to 2% comparable sales growth due to high interest rates curbing big-ticket spending, though a housing recovery could lift it to 4-5%.
Chinese competitor Vevor enters Houston, challenging Home Depot's dominance as shares trade at a lofty P/E of 26.3x amid housing uncertainty.
Launched agentic AI tools with Google Cloud on January 11 to streamline customer projects, plus new research on January 20 underscoring skilled labor gaps in construction.

Sentiment:

⚖️Neutral

Analysts Boost Amazon Price Targets, Eyeing Explosive Breakout in 2026

AWS growth accelerated to 20% in the latest quarter from prior declines to 17%, with operating margins jumping to 34.6%, signaling robust cloud and AI momentum.
Wedbush highlights breakout potential from automation, new AI-powered Alexa features, and Project Kuiper monetization kicking off soon.
Potential Prime subscription price hike in 2026, paired with strong retail and advertising trends, positions Amazon for outsized gains.

Sentiment:

🐃Bullish

Home Depot confronts housing headwinds and new competition amid AI innovation push.

Cautious 2026 outlook projects flat to 2% comparable sales growth due to high interest rates curbing big-ticket spending, though a housing recovery could lift it to 4-5%.
Chinese competitor Vevor enters Houston, challenging Home Depot's dominance as shares trade at a lofty P/E of 26.3x amid housing uncertainty.
Launched agentic AI tools with Google Cloud on January 11 to streamline customer projects, plus new research on January 20 underscoring skilled labor gaps in construction.

Sentiment:

⚖️Neutral

Investment Analysis

Amazon

AMZN

Pros

Amazon boasts a higher net margin of 10.54%, indicating better profitability compared to Home Depot.
It has substantially higher revenue and earnings, reflecting strong scale and market presence.
Amazon demonstrates diversified income streams including retail, cloud computing, and advertising, offering multiple growth drivers.

Considerations

Amazon's return on equity is significantly lower at 23.84%, indicating less efficient use of shareholder capital.
Its stock exhibits higher volatility with a beta of 1.28, potentially resulting in greater price fluctuations.
Amazon trades at a much higher forward price-to-earnings ratio around 35.7, which may imply less attractive valuation compared to Home Depot.

Home Depot

HD

Pros

Home Depot shows exceptional return on equity at 193.99%, indicating highly efficient capital use.
It has a lower forward P/E ratio near 24.8, suggesting it may be more reasonably valued.
The company benefits from a robust market position in home improvement with ongoing expansion in professional contractor segments.

Considerations

Home Depot's net margin is lower at 8.86%, reflecting slightly less profitability than Amazon.
Its sales growth has been somewhat disappointing recently, partially affected by price hikes and economic factors.
The stock trades at a high price-to-book ratio around 50.6x, which may raise concerns about overvaluation.

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