Comprehensive Stock Comparison
Compare Lowe's Companies, Inc. (LOW) vs The Home Depot, Inc. (HD) vs Floor & Decor Holdings, Inc. (FND) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | FND | 5.1% revenue growth vs LOW's 3.1% |
| Value | LOW | Lower P/E (21.0x vs 33.3x), PEG 2.36 vs 38.90 |
| Quality / Margins | HD | 8.6% net margin vs FND's 4.7% |
| Stability / Safety | HD | Beta 0.60 vs FND's 1.30 |
| Dividends | HD | 2.4% yield, 16-year raise streak, vs LOW's 1.8% |
| Momentum (1Y) | LOW | +8.3% vs FND's -28.5% |
| Efficiency (ROA) | HD | 13.5% ROA vs FND's 3.9%, ROIC 32.1% vs 5.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Lowe's is a major home improvement retailer that sells products for construction, maintenance, repair, remodeling, and decorating through its physical stores and online channels. It generates revenue primarily from retail sales of national brand-name merchandise and private label products — with professional customers representing a growing segment — along with installation services and extended protection plans. The company's competitive advantage lies in its extensive store network, strong brand recognition, and scale advantages in procurement and distribution.
The Home Depot is the world's largest home improvement retailer selling building materials, tools, appliances, and garden products. It generates revenue primarily from retail store sales — about 90% of total revenue — with the remainder from professional contractor services and installation offerings. Its competitive advantage lies in massive scale, extensive store network, and strong brand recognition that creates a one-stop-shop moat for DIY homeowners and professional contractors alike.
Floor & Decor is a specialty retailer operating warehouse-format stores that sell hard surface flooring — tile, wood, laminate, vinyl, and natural stone — along with installation accessories to both professional contractors and do-it-yourself homeowners. It generates revenue primarily through in-store sales (roughly 90% of total) with the remainder from e-commerce, serving a mix of professional installers, commercial businesses, and retail customers. The company's competitive advantage lies in its large-format, low-cost warehouse model that offers extensive in-stock selection at value prices — a difficult-to-replicate physical footprint and supply chain.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 3 stocks. BestLagging
Financial Scorecard
LOW leads in 1 of 6 categories (Valuation Metrics). FND leads in 1 (Profitability & Efficiency). 3 tied.
Financial Metrics (TTM)
HD is the larger business by revenue, generating $164.7B annually — 35.3x FND's $4.7B. Profitability is closely matched — net margins range from 8.6% (HD) to 4.7% (FND). On growth, LOW holds the edge at +10.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | LOWLowe's Companies,… | HDThe Home Depot, I… | FNDFloor & Decor Hol… |
|---|---|---|---|
| RevenueTrailing 12 months | $86.3B | $164.7B | $4.7B |
| EBITDAEarnings before interest/tax | $12.3B | $24.2B | $524M |
| Net IncomeAfter-tax profit | $6.7B | $14.2B | $217M |
| Free Cash FlowCash after capex | $7.7B | $12.6B | $23M |
| Gross MarginGross profit ÷ Revenue | +33.5% | +33.3% | +42.3% |
| Operating MarginEBIT ÷ Revenue | +11.8% | +12.7% | +6.1% |
| Net MarginNet income ÷ Revenue | +7.7% | +8.6% | +4.7% |
| FCF MarginFCF ÷ Revenue | +8.9% | +7.7% | +0.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.9% | -3.8% | +5.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -11.0% | -14.6% | +10.4% |
Valuation Metrics
At 22.3x trailing earnings, LOW trades at a 38% valuation discount to FND's 36.0x P/E. Adjusting for growth (PEG ratio), LOW offers better value at 2.52x vs FND's 38.90x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | LOWLowe's Companies,… | HDThe Home Depot, I… | FNDFloor & Decor Hol… |
|---|---|---|---|
| Market CapShares × price | $148.2B | $378.4B | $7.4B |
| Enterprise ValueMkt cap + debt − cash | $154.4B | $396.1B | $9.0B |
| Trailing P/EPrice ÷ TTM EPS | 22.33x | 26.75x | 35.98x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.96x | 25.24x | 33.25x |
| PEG RatioP/E ÷ EPS growth rate | 2.52x | 7.49x | 38.90x |
| EV / EBITDAEnterprise value multiple | 12.76x | 16.39x | 33.30x |
| Price / SalesMarket cap ÷ Revenue | 1.72x | 2.30x | 1.59x |
| Price / BookPrice ÷ Book value/share | — | 29.62x | 3.11x |
| Price / FCFMarket cap ÷ FCF | 19.36x | 29.93x | 116.18x |
Profitability & Efficiency
HD delivers a 110.5% return on equity — every $100 of shareholder capital generates $110 in annual profit, vs $9 for FND. FND carries lower financial leverage with a 0.75x debt-to-equity ratio, signaling a more conservative balance sheet compared to HD's 1.48x. On the Piotroski fundamental quality scale (0–9), FND scores 7/9 vs HD's 4/9, reflecting strong financial health.
| Metric | LOWLowe's Companies,… | HDThe Home Depot, I… | FNDFloor & Decor Hol… |
|---|---|---|---|
| ROE (TTM)Return on equity | — | +110.5% | +9.2% |
| ROA (TTM)Return on assets | +12.3% | +13.5% | +3.9% |
| ROICReturn on invested capital | +76.2% | +32.1% | +5.3% |
| ROCEReturn on capital employed | +33.6% | +29.8% | +8.2% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 | 7 |
| Debt / EquityFinancial leverage | — | 1.48x | 0.75x |
| Net DebtTotal debt minus cash | $6.2B | $17.6B | $1.5B |
| Cash & Equiv.Liquid assets | $982M | $1.4B | $249M |
| Total DebtShort + long-term debt | $7.2B | $19.0B | $1.8B |
| Interest CoverageEBIT ÷ Interest expense | 8.90x | 8.71x | 39.46x |
Total Returns (with DRIP)
A $10,000 investment in LOW five years ago would be worth $17,610 today (with dividends reinvested), compared to $7,221 for FND. Over the past 12 months, LOW leads with a +8.3% total return vs FND's -28.5%. The 3-year compound annual growth rate (CAGR) favors HD at 11.2% vs FND's -9.0% — a key indicator of consistent wealth creation.
| Metric | LOWLowe's Companies,… | HDThe Home Depot, I… | FNDFloor & Decor Hol… |
|---|---|---|---|
| YTD ReturnYear-to-date | +7.6% | +10.1% | +9.7% |
| 1-Year ReturnPast 12 months | +8.3% | -1.7% | -28.5% |
| 3-Year ReturnCumulative with dividends | +35.2% | +37.3% | -24.7% |
| 5-Year ReturnCumulative with dividends | +76.1% | +61.1% | -27.8% |
| 10-Year ReturnCumulative with dividends | +335.9% | +257.2% | +115.6% |
| CAGR (3Y)Annualised 3-year return | +10.6% | +11.2% | -9.0% |
Risk & Volatility
HD is the less volatile stock with a 0.60 beta — it tends to amplify market swings less than FND's 1.30 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. LOW currently trades 90.3% from its 52-week high vs FND's 70.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LOWLowe's Companies,… | HDThe Home Depot, I… | FNDFloor & Decor Hol… |
|---|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.61x | 0.60x | 1.30x |
| 52-Week HighHighest price in past year | $293.06 | $426.75 | $98.24 |
| 52-Week LowLowest price in past year | $206.39 | $326.31 | $55.11 |
| % of 52W HighCurrent price vs 52-week peak | +90.3% | +89.2% | +70.3% |
| RSI (14)Momentum oscillator 0–100 | 40.9 | 46.1 | 52.5 |
| Avg Volume (50D)Average daily shares traded | 2.2M | 3.3M | 2.1M |
Analyst Outlook
Analyst consensus: LOW as "Buy", HD as "Buy", FND as "Hold". Consensus price targets imply 10.0% upside for FND (target: $76) vs 9.0% for HD (target: $415). For income investors, HD offers the higher dividend yield at 2.41% vs LOW's 1.78%.
| Metric | LOWLowe's Companies,… | HDThe Home Depot, I… | FNDFloor & Decor Hol… |
|---|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy | Hold |
| Price TargetConsensus 12-month target | $289.77 | $414.92 | $76.00 |
| # AnalystsCovering analysts | 51 | 61 | 36 |
| Dividend YieldAnnual dividend ÷ price | +1.8% | +2.4% | — |
| Dividend StreakConsecutive years of raises | 16 | 16 | 2 |
| Dividend / ShareAnnual DPS | $4.71 | $9.18 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Lowe's Companies, I… (LOW) | 100 | 242.31 | +142.3% |
| The Home Depot, Inc. (HD) | 100 | 164.44 | +64.4% |
| Floor & Decor Holdi… (FND) | 100 | 124.32 | +24.3% |
Lowe's Companies, I… (LOW) returned +76% over 5 years vs Floor & Decor Holdi… (FND)'s -28%. A $10,000 investment in LOW 5 years ago would be worth $17,610 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Lowe's Companies, I… (LOW) | $65.0B | $86.3B | +32.7% |
| The Home Depot, Inc. (HD) | $94.6B | $164.7B | +74.1% |
| Floor & Decor Holdi… (FND) | $1.1B | $4.7B | +345.8% |
Lowe's Companies, Inc.'s revenue grew from $65.0B (2016) to $86.3B (2025) — a 3.2% CAGR. The Home Depot, Inc.'s revenue grew from $94.6B (2016) to $164.7B (2025) — a 6.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Lowe's Companies, I… (LOW) | 4.8% | 7.7% | +62.2% |
| The Home Depot, Inc. (HD) | 8.4% | 8.6% | +2.2% |
| Floor & Decor Holdi… (FND) | 4.1% | 4.5% | +8.7% |
Lowe's Companies, Inc.'s net margin went from 5% (2016) to 8% (2025). The Home Depot, Inc.'s net margin went from 8% (2016) to 9% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Lowe's Companies, I… (LOW) | 22.7 | 20.4 | -10.1% |
| The Home Depot, Inc. (HD) | 26 | 24.2 | -6.9% |
| Floor & Decor Holdi… (FND) | 47.3 | 31.7 | -33.0% |
Lowe's Companies, Inc. has traded in a 17x–32x P/E range over 9 years; current trailing P/E is ~22x. The Home Depot, Inc. has traded in a 18x–27x P/E range over 9 years; current trailing P/E is ~27x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Lowe's Companies, I… (LOW) | 3.47 | 11.85 | +241.5% |
| The Home Depot, Inc. (HD) | 6.45 | 14.23 | +120.6% |
| Floor & Decor Holdi… (FND) | 0.44 | 1.92 | +336.4% |
Lowe's Companies, Inc.'s EPS grew from $3.47 (2016) to $11.85 (2025) — a 15% CAGR. The Home Depot, Inc.'s EPS grew from $6.45 (2016) to $14.23 (2025) — a 9% CAGR.
Chart 6Free Cash Flow — 5 Years
Lowe's Companies, Inc. generated $8B FCF in 2025 (-7% vs 2021). The Home Depot, Inc. generated $13B FCF in 2025 (-10% vs 2021).
LOW vs HD vs FND: Key Questions Answered
9 questions · data-driven answers · updated daily
01Is LOW or HD or FND a better buy right now?
Lowe's Companies, Inc. (LOW) offers the better valuation at 22.3x trailing P/E (21.0x forward), making it the more compelling value choice. Analysts rate Lowe's Companies, Inc. (LOW) a "Buy" — based on 51 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.
02Which has the better valuation — LOW or HD or FND?
On trailing P/E, Lowe's Companies, Inc. (LOW) is the cheapest at 22.3x versus Floor & Decor Holdings, Inc. at 36.0x. On forward P/E, Lowe's Companies, 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: Lowe's Companies, Inc. wins at 2.36x versus Floor & Decor Holdings, Inc.'s 38.90x.
03Which is the better long-term investment — LOW or HD or FND?
Over the past 5 years, Lowe's Companies, Inc. (LOW) delivered a total return of +76.1%, compared to -27.8% for Floor & Decor Holdings, Inc. (FND). A $10,000 investment in LOW five years ago would be worth approximately $18K today (assuming dividends reinvested). Over 10 years, the gap is even starker: LOW returned +335.9% versus FND's +115.6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — LOW or HD or FND?
By beta (market sensitivity over 5 years), The Home Depot, Inc. (HD) is the lower-risk stock at 0.60β versus Floor & Decor Holdings, Inc.'s 1.30β — meaning FND is approximately 115% more volatile than HD relative to the S&P 500. On balance sheet safety, Floor & Decor Holdings, Inc. (FND) carries a lower debt/equity ratio of 75% versus 148% for The Home Depot, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — LOW or HD or FND?
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 5.8% for FND. At the gross margin level — before operating expenses — FND leads at 43.6%, 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.
06Is LOW or HD or FND more undervalued right now?
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 2.36x versus Floor & Decor Holdings, Inc.'s 38.90x. 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 21.0x forward P/E versus 33.3x for Floor & Decor Holdings, Inc. — 12.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FND: 10.0% to $76.00.
07Which pays a better dividend — LOW or HD or FND?
In this comparison, HD (2.4% yield), LOW (1.8% yield) pay a dividend. FND does not pay a meaningful dividend and should not be held primarily for income.
08Is LOW or HD or FND better for a retirement portfolio?
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 0.61), 1.8% yield, +335.9% 10Y return). Both have compounded well over 10 years (LOW: +335.9%, FND: +115.6%), 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.
09What are the main differences between LOW and HD and FND?
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. LOW, HD pay 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.
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