QXO vs HD

For growth investors, QXO, Inc.

(QXO) is the stronger pick with 119. 3% 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. 7x trailing P/E (21. 5x forward), making it the more compelling value choice. Analysts rate QXO, Inc. (QXO) a "Buy" — based on 5 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 forward P/E, The Home Depot, Inc.

is actually cheaper at 21. 5x.

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

(HD) delivered a total return of +7. 3%, compared to -89. 1% for QXO, Inc. (QXO). Over 10 years, the gap is even starker: HD returned +184. 0% versus QXO's -49. 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 QXO, Inc. 's 2. 24β — meaning QXO is approximately 168% more volatile than HD relative to the S&P 500. On balance sheet safety, QXO, Inc. (QXO) carries a lower debt/equity ratio of 46% versus 148% for The Home Depot, Inc. — giving it more financial flexibility in a downturn.

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

(QXO) is pulling ahead at 119. 3% versus 3. 2% for The Home Depot, Inc. (HD). On earnings-per-share growth, the picture is similar: The Home Depot, Inc. grew EPS -4. 6% year-over-year, compared to -472. 7% for QXO, Inc.. Over a 3-year CAGR, QXO leads at 433. 8% 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. 1% for QXO, 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 -3. 6% for QXO. At the gross margin level — before operating expenses — HD leads at 33. 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.

On forward earnings alone, The Home Depot, Inc.

(HD) trades at 21. 5x forward P/E versus 51. 5x for QXO, Inc. — 30. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for QXO: 61. 0% to $30. 20.

All stocks in this comparison pay dividends.

QXO, Inc. (QXO) offers the highest yield at 91. 1%, versus 2. 8% for The Home Depot, Inc. (HD).

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, +184. 0% 10Y return). QXO, Inc. (QXO) carries a higher beta of 2. 24 — 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: +184. 0%, QXO: -49. 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.

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

In terms of investment character: QXO is a small-cap high-growth stock; HD is a large-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.