Home Depot vs Lowe's
This page compares Home Depot and Lowe's to illuminate their business models, financial performance, and market context in a clear, accessible way. It presents neutral analysis of how each company operates and competes, helping readers understand industry dynamics. Educational content, not financial advice.
This page compares Home Depot and Lowe's to illuminate their business models, financial performance, and market context in a clear, accessible way. It presents neutral analysis of how each company ope...
Why It's Moving
Home Depot reaffirms 2025 guidance and unveils optimistic 2026 outlook at investor conference, signaling steady growth ahead.
- Reaffirmed FY2025 guidance includes ~3% sales growth, $2B from GMS, and 12 new stores, underscoring resilience despite a 5-6% EPS dip from 2024.[1][3]
- Preliminary 2026 outlook anticipates modest demand pickup from lower rates and replacement cycles, with potential for 4-5% comps in a market recovery scenario driving faster profit growth.[1][2][3]
- Shares climbed 0.92% to $354.39 Friday as analysts eye the event as a pivot from earnings declines, with JP Morgan forecasting 2.2% SSS and $15.46 EPS.[2]
Lowe's Powers Through Q3 with Pro Growth and Key Acquisition Boost
- Adjusted EPS climbed 5.9% to $3.06, beating prior-year figures and underscoring operational strength despite softer retail comps.[1]
- Total sales hit $20.8 billion, up $0.6 billion year-over-year, fueled by 11.4% online growth and double-digit gains in home services and Pro segments.[1]
- Completed $8.8 billion Foundation Building Materials deal adds 370+ locations to enhance Pro assortment, fulfillment speed, and trade credit in high-growth regions.[1]
Home Depot reaffirms 2025 guidance and unveils optimistic 2026 outlook at investor conference, signaling steady growth ahead.
- Reaffirmed FY2025 guidance includes ~3% sales growth, $2B from GMS, and 12 new stores, underscoring resilience despite a 5-6% EPS dip from 2024.[1][3]
- Preliminary 2026 outlook anticipates modest demand pickup from lower rates and replacement cycles, with potential for 4-5% comps in a market recovery scenario driving faster profit growth.[1][2][3]
- Shares climbed 0.92% to $354.39 Friday as analysts eye the event as a pivot from earnings declines, with JP Morgan forecasting 2.2% SSS and $15.46 EPS.[2]
Lowe's Powers Through Q3 with Pro Growth and Key Acquisition Boost
- Adjusted EPS climbed 5.9% to $3.06, beating prior-year figures and underscoring operational strength despite softer retail comps.[1]
- Total sales hit $20.8 billion, up $0.6 billion year-over-year, fueled by 11.4% online growth and double-digit gains in home services and Pro segments.[1]
- Completed $8.8 billion Foundation Building Materials deal adds 370+ locations to enhance Pro assortment, fulfillment speed, and trade credit in high-growth regions.[1]
Which Baskets Do They Appear In?
Retail Hybrid Model Growth Trends 2025
Costco's impressive sales growth, fueled by a 26.1% jump in digital demand, highlights the power of blending physical and online retail. This trend creates an investment opportunity in the e-commerce platforms, payment processors, and logistics companies that enable this successful hybrid model for all retailers.
Published: October 9, 2025
Explore BasketConsumer Strength: The Retail Rebound
A surprising surge in U.S. retail sales, driven by strong automotive and home furnishing purchases, signals continued consumer strength despite economic headwinds. This theme focuses on retailers and manufacturers in these key discretionary sectors that are benefiting from the robust consumer demand.
Published: August 18, 2025
Explore BasketSkills Over Scrolls: The Trade School Boom
Mike Rowe's proposal to redirect federal grants from elite universities to trade schools could reshape education funding in America. This carefully selected group of stocks includes companies that stand to benefit if billions flow into vocational training—from tool manufacturers to trade schools themselves.
Published: July 1, 2025
Explore BasketWhich Baskets Do They Appear In?
Retail Hybrid Model Growth Trends 2025
Costco's impressive sales growth, fueled by a 26.1% jump in digital demand, highlights the power of blending physical and online retail. This trend creates an investment opportunity in the e-commerce platforms, payment processors, and logistics companies that enable this successful hybrid model for all retailers.
Published: October 9, 2025
Explore BasketConsumer Strength: The Retail Rebound
A surprising surge in U.S. retail sales, driven by strong automotive and home furnishing purchases, signals continued consumer strength despite economic headwinds. This theme focuses on retailers and manufacturers in these key discretionary sectors that are benefiting from the robust consumer demand.
Published: August 18, 2025
Explore BasketSkills Over Scrolls: The Trade School Boom
Mike Rowe's proposal to redirect federal grants from elite universities to trade schools could reshape education funding in America. This carefully selected group of stocks includes companies that stand to benefit if billions flow into vocational training—from tool manufacturers to trade schools themselves.
Published: July 1, 2025
Explore BasketU.S. Homebuilding Rebound
Recent data shows new home sales jumping 7.4% monthly, signaling a strong housing market revival. This collection features carefully selected homebuilders and suppliers positioned to benefit from increasing construction activity and rising home prices.
Published: June 30, 2025
Explore BasketAftermath: Philadelphia Reconstruction
Following a catastrophic explosion in Philadelphia that destroyed multiple homes, these carefully selected stocks represent companies positioned to benefit from urgent rebuilding efforts. Our team of analysts has identified businesses across construction, materials, and infrastructure that may see increased demand during this recovery period.
Published: June 30, 2025
Explore BasketSecond Chance Employers
Looking for investments with heart and smarts? These companies are changing lives through fair chance hiring practices, employing individuals rebuilding their lives after incarceration. Handpicked by our analysts, these forward-thinking businesses aren't just driving social change—they're building loyal workforces that boost their bottom line.
Published: June 17, 2025
Explore BasketGen-X Core Holdings
These iconic brands shaped the digital revolution and suburban lifestyle we know today. Our analysts have carefully selected these enduring market leaders for their proven track records and strong positions in technology, retail, and automotive sectors.
Published: June 17, 2025
Explore BasketInvestment Analysis
Pros
- Home Depot commands a dominant market share of approximately 47%, significantly larger than Lowe's 28%, reflecting strong customer preference and brand strength.
- The company has a consistent gross margin around 33.2%, demonstrating mature and efficient operations in its sector.
- Home Depot has steadily growing revenues and earnings projections, with fiscal 2024 revenue expected to grow nearly 4% year over year and EPS slightly increasing.
Considerations
- Shares trade at a premium valuation with a P/E ratio above its 5-year median, indicating less margin of safety compared to Lowe's.
- Home Depot’s maximum historical drawdown is higher than Lowe's, suggesting greater downside risk during market downturns.
- Its dividend yield is lower at around 2.4%, offering less income generation relative to Lowe’s higher shareholder yield.
Lowe's
LOW
Pros
- Lowe’s stock trades at a significant valuation discount with a P/E roughly 22% lower than Home Depot’s, providing a margin of safety.
- The company boasts superior capital efficiency with a return on invested capital near 27.8%, indicating strong operational excellence.
- Lowe’s free cash flow margin is higher, around 9.2%, supporting better financial flexibility and potential for shareholder returns.
Considerations
- Lowe’s market share and overall size are considerably smaller than Home Depot’s, which may limit economies of scale and competitive positioning.
- The company is currently expected to face slight declines in revenue and earnings for fiscal 2024, signaling near-term growth challenges.
- Lowe’s stock exhibits higher volatility and a larger historical drawdown compared to Home Depot, indicating more price risk.
Why invest with Nemo?
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Comparisons
Home Depot vs Booking Holdings
Home Depot vs Booking Holdings
Home Depot vs Nike
Home Depot vs Nike: Stock comparison
Home Depot vs Toyota
Home Depot vs Toyota: Stock comparison