FND vs HD

For growth investors, Floor & Decor Holdings, Inc.

(FND) is the stronger pick with 5. 1% revenue growth year-over-year, versus 3. 2% for The Home Depot, Inc. (HD). The Home Depot, Inc. (HD) offers the better valuation at 22. 2x trailing P/E (21. 0x forward), making it the more compelling value choice. Analysts rate The Home Depot, Inc. (HD) a "Buy" — based on 62 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, The Home Depot, Inc.

(HD) is the cheapest at 22. 2x versus Floor & Decor Holdings, Inc. at 25. 2x. On forward P/E, The Home Depot, Inc. is actually cheaper at 21. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Home Depot, Inc. wins at 5. 87x versus Floor & Decor Holdings, Inc. 's 28. 60x.

Over the past 5 years, The Home Depot, Inc.

(HD) delivered a total return of +7. 4%, compared to -57. 1% for Floor & Decor Holdings, Inc. (FND). Over 10 years, the gap is even starker: HD returned +181. 8% versus FND's +50. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Home Depot, Inc.

(HD) is the lower-risk stock at 0. 84β versus Floor & Decor Holdings, Inc. 's 1. 80β — meaning FND is approximately 115% more volatile than HD relative to the S&P 500. On balance sheet safety, The Home Depot, Inc. (HD) carries a lower debt/equity ratio of 148% versus 151% for Floor & Decor Holdings, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Floor & Decor Holdings, Inc.

(FND) is pulling ahead at 5. 1% versus 3. 2% for The Home Depot, Inc. (HD). On earnings-per-share growth, the picture is similar: Floor & Decor Holdings, Inc. grew EPS 1. 1% year-over-year, compared to -4. 6% for The Home Depot, Inc.. Over a 3-year CAGR, FND leads at 3. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The Home Depot, Inc.

(HD) is the more profitable company, earning 8. 6% net margin versus 4. 5% for Floor & Decor Holdings, Inc. — meaning it keeps 8. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HD leads at 12. 7% versus 5. 9% for FND. At the gross margin level — before operating expenses — FND leads at 41. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, The Home Depot, Inc. (HD) is the more undervalued stock at a PEG of 5. 87x versus Floor & Decor Holdings, Inc. 's 28. 60x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, The Home Depot, Inc. (HD) trades at 21. 0x forward P/E versus 24. 4x for Floor & Decor Holdings, Inc. — 3. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FND: 30. 8% to $63. 18.

In this comparison, HD (2.

9% yield) pays a dividend. FND does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, The Home Depot, Inc.

(HD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 84), 2. 9% yield, +181. 8% 10Y return). Floor & Decor Holdings, Inc. (FND) carries a higher beta of 1. 80 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (HD: +181. 8%, FND: +50. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

HD pays a dividend while FND does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.