FTDR vs HD

For growth investors, Frontdoor, Inc.

(FTDR) is the stronger pick with 13. 6% revenue growth year-over-year, versus 3. 2% for The Home Depot, Inc. (HD). Frontdoor, Inc. (FTDR) offers the better valuation at 19. 3x trailing P/E (14. 8x 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, Frontdoor, Inc.

(FTDR) is the cheapest at 19. 3x versus The Home Depot, Inc. at 22. 7x. On forward P/E, Frontdoor, Inc. is actually cheaper at 14. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Frontdoor, Inc. wins at 0. 70x versus The Home Depot, Inc. 's 6. 02x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Frontdoor, Inc.

(FTDR) delivered a total return of +29. 8%, compared to +8. 0% for The Home Depot, Inc. (HD). Over 10 years, the gap is even starker: HD returned +185. 4% versus FTDR's +120. 4%. 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 Frontdoor, Inc. 's 1. 04β — meaning FTDR is approximately 24% 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 5% for Frontdoor, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Frontdoor, Inc.

(FTDR) is pulling ahead at 13. 6% versus 3. 2% for The Home Depot, Inc. (HD). On earnings-per-share growth, the picture is similar: Frontdoor, Inc. grew EPS 13. 6% year-over-year, compared to -4. 6% for The Home Depot, Inc.. Over a 3-year CAGR, FTDR leads at 8. 0% 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.

Frontdoor, Inc.

(FTDR) is the more profitable company, earning 12. 2% net margin versus 8. 6% for The Home Depot, Inc. — meaning it keeps 12. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FTDR leads at 19. 1% versus 12. 7% for HD. At the gross margin level — before operating expenses — FTDR leads at 55. 3%, 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, Frontdoor, Inc. (FTDR) is the more undervalued stock at a PEG of 0. 70x versus The Home Depot, Inc. 's 6. 02x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Frontdoor, Inc. (FTDR) trades at 14. 8x forward P/E versus 21. 5x for The Home Depot, Inc. — 6. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HD: 26. 3% to $408. 08.

In this comparison, HD (2.

8% yield) pays a dividend. FTDR 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. 8% yield, +185. 4% 10Y return). Both have compounded well over 10 years (HD: +185. 4%, FTDR: +120. 4%), 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 FTDR 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.