HD vs TSCO vs LOW vs WMT

For growth investors, Walmart Inc.

(WMT) is the stronger pick with 4. 7% revenue growth year-over-year, versus 3. 1% for Lowe's Companies, Inc. (LOW). Tractor Supply Company (TSCO) offers the better valuation at 15. 9x trailing P/E (15. 3x 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, Tractor Supply Company (TSCO) is the cheapest at 15.

9x versus Walmart Inc. at 47. 9x. On forward P/E, Tractor Supply Company is actually cheaper at 15. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Tractor Supply Company wins at 1. 52x versus The Home Depot, Inc. 's 5. 87x — a reasonable growth-adjusted valuation.

Over the past 5 years, Walmart Inc.

(WMT) delivered a total return of +187. 7%, compared to -6. 0% for Tractor Supply Company (TSCO). Over 10 years, the gap is even starker: WMT returned +517. 6% versus TSCO's +102. 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), Walmart Inc.

(WMT) is the lower-risk stock at 0. 12β versus Lowe's Companies, Inc. 's 0. 86β — meaning LOW is approximately 639% more volatile than WMT relative to the S&P 500. On balance sheet safety, Walmart Inc. (WMT) carries a lower debt/equity ratio of 67% versus 2% for Tractor Supply Company — giving it more financial flexibility in a downturn.

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

(WMT) is pulling ahead at 4. 7% versus 3. 1% for Lowe's Companies, Inc. (LOW). On earnings-per-share growth, the picture is similar: Walmart Inc. grew EPS 13. 3% year-over-year, compared to -4. 6% for The Home Depot, Inc.. Over a 3-year CAGR, WMT leads at 5. 3% 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 3. 1% for Walmart 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 4. 2% for WMT. 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, Tractor Supply Company (TSCO) is the more undervalued stock at a PEG of 1. 52x versus The Home Depot, Inc. 's 5. 87x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Tractor Supply Company (TSCO) trades at 15. 3x forward P/E versus 44. 9x for Walmart Inc. — 29. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TSCO: 72. 3% to $56. 27.

All stocks in this comparison pay dividends.

The Home Depot, Inc. (HD) offers the highest yield at 2. 9%, versus 0. 7% for Walmart Inc. (WMT).

For long-horizon retirement investors, Walmart Inc.

(WMT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 12), 0. 7% yield, +517. 6% 10Y return). Both have compounded well over 10 years (WMT: +517. 6%, HD: +181. 8%), 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.

These companies operate in different sectors (HD (Consumer Cyclical) and TSCO (Consumer Cyclical) and LOW (Consumer Cyclical) and WMT (Consumer Defensive)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: HD is a large-cap quality compounder stock; TSCO is a mid-cap deep-value stock; LOW is a mid-cap quality compounder stock; WMT is a mega-cap quality compounder stock. 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.