Home Depot vs Lowe's

This page provides a detailed stock comparison between The Home Depot, Inc. and Lowe's Companies Inc. We examine their respective business models, analyse financial performance metrics, and consider their positions within the broader market context. Our aim is to offer a clear, factual overview for educational purposes. Educational content, not financial advice.

This page provides a detailed stock comparison between The Home Depot, Inc. and Lowe's Companies Inc. We examine their respective business models, analyse financial performance metrics, and consider t...

Comparison Snapshot

Key Financial Metrics

HD

Metric

LOW

$384.80B

Market Cap

$155.89B

2.59%

Potential Profit

-0.10%

Buy

Analyst Rating

Buy

Why It's Moving

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

Lowe's Stock Edges Higher Amid Fresh Analyst Upgrades Signaling Sector Optimism.

Gordon Haskett upgraded LOW from Hold to Buy on January 13, citing improved growth prospects in a recovering housing market.
Barclays lifted its rating to Overweight on January 7, pointing to Lowe's competitive edge over peers in cost management.
Stock opened at $278.43 on January 26, up from recent closes around $276-277, buoyed by bullish analyst consensus.

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

Lowe's Stock Edges Higher Amid Fresh Analyst Upgrades Signaling Sector Optimism.

Gordon Haskett upgraded LOW from Hold to Buy on January 13, citing improved growth prospects in a recovering housing market.
Barclays lifted its rating to Overweight on January 7, pointing to Lowe's competitive edge over peers in cost management.
Stock opened at $278.43 on January 26, up from recent closes around $276-277, buoyed by bullish analyst consensus.

Sentiment:

🐃Bullish

Investment Analysis

Home Depot

HD

Pros

Home Depot maintains stronger appeal to professional customers, supporting resilient demand amid housing slowdowns.
Company upholds record in-stock levels and expands exclusive brands, positioning for rapid scaling if rates ease.
Offers higher dividend yield at 2.6% with established payout supported by solid cash per share of $1.69.

Considerations

Trades at premium valuation with trailing P/E of 24.0 and forward P/E of 22.4, exceeding Lowe's multiples.
Projects flat FY 2026 growth and modest 0-4% EPS rise for FY 2027 due to frozen housing market.
Higher dividend payout ratio around 60% limits flexibility for aggressive capital reinvestment compared to peers.

Lowe's

LOW

Pros

Exhibits lower valuation with trailing P/E of 20.1 and forward P/E of 18.5, offering relative value appeal.
Lower dividend payout ratio of 36-37% enables faster dividend growth and business reinvestment.
Higher institutional ownership at 80% signals stronger investor confidence versus Home Depot's 74%.

Considerations

Anticipates flat sales growth in current fiscal year, mirroring sector pressures from subdued housing turnover.
Experiences higher stock volatility at 6.56% compared to Home Depot's lower 5.26%.
Lags in large project demand with visit declines through mid-2025, deferring discretionary renovations.

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