HD vs LOW

For growth investors, The Home Depot, Inc.

(HD) is the stronger pick with 3. 2% revenue growth year-over-year, versus 3. 1% for Lowe's Companies, Inc. (LOW). Lowe's Companies, Inc. (LOW) offers the better valuation at 18. 9x trailing P/E (18. 3x forward), making it the more compelling value choice. Analysts rate The Home Depot, Inc. (HD) a "Buy" — based on 63 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, Lowe's Companies, Inc.

(LOW) is the cheapest at 18. 9x versus The Home Depot, Inc. at 24. 1x. On forward P/E, Lowe's Companies, Inc. is actually cheaper at 18. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Lowe's Companies, Inc. wins at 2. 06x versus The Home Depot, Inc. 's 6. 41x.

Over the past 5 years, Lowe's Companies, Inc.

(LOW) delivered a total return of +5. 1%, compared to +4. 8% for The Home Depot, Inc. (HD). Over 10 years, the gap is even starker: LOW returned +282. 4% versus HD's +232. 1%. 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), Lowe's Companies, Inc.

(LOW) is the lower-risk stock at 0. 59β versus The Home Depot, Inc. 's 0. 69β — meaning HD is approximately 16% more volatile than LOW relative to the S&P 500.

By revenue growth (latest reported year), The Home Depot, Inc.

(HD) is pulling ahead at 3. 2% versus 3. 1% for Lowe's Companies, Inc. (LOW). On earnings-per-share growth, the picture is similar: Lowe's Companies, Inc. grew EPS -3. 1% year-over-year, compared to -4. 6% for The Home Depot, Inc.. Over a 3-year CAGR, HD leads at 1. 5% 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 7. 7% for Lowe's Companies, 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 11. 8% for LOW. At the gross margin level — before operating expenses — LOW leads at 33. 5%, 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, Lowe's Companies, Inc. (LOW) is the more undervalued stock at a PEG of 2. 06x versus The Home Depot, Inc. 's 6. 41x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Lowe's Companies, Inc. (LOW) trades at 18. 3x forward P/E versus 22. 9x for The Home Depot, Inc. — 4. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HD: 10. 2% to $378. 64.

All stocks in this comparison pay dividends.

The Home Depot, Inc. (HD) offers the highest yield at 2. 7%, versus 2. 1% for Lowe's Companies, Inc. (LOW).

For long-horizon retirement investors, Lowe's Companies, Inc.

(LOW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 59), 2. 1% yield, +282. 4% 10Y return). Both have compounded well over 10 years (LOW: +282. 4%, HD: +232. 1%), 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.

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.