ZWS vs HD

For growth investors, Zurn Elkay Water Solutions Corporation (ZWS) is the stronger pick with 8.

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 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, The Home Depot, Inc.

(HD) is the cheapest at 22. 7x versus Zurn Elkay Water Solutions Corporation at 45. 6x. On forward P/E, The Home Depot, Inc. is actually cheaper at 21. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Zurn Elkay Water Solutions Corporation wins at 0. 91x versus The Home Depot, Inc. 's 6. 01x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Zurn Elkay Water Solutions Corporation (ZWS) delivered a total return of +108.

0%, compared to +7. 3% for The Home Depot, Inc. (HD). Over 10 years, the gap is even starker: ZWS returned +435. 0% versus HD's +184. 0%. 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 Zurn Elkay Water Solutions Corporation's 1. 11β — meaning ZWS is approximately 33% more volatile than HD relative to the S&P 500. On balance sheet safety, Zurn Elkay Water Solutions Corporation (ZWS) carries a lower debt/equity ratio of 36% versus 148% for The Home Depot, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Zurn Elkay Water Solutions Corporation (ZWS) is pulling ahead at 8.

3% versus 3. 2% for The Home Depot, Inc. (HD). On earnings-per-share growth, the picture is similar: Zurn Elkay Water Solutions Corporation grew EPS 21. 7% year-over-year, compared to -4. 6% for The Home Depot, Inc.. Over a 3-year CAGR, ZWS leads at 9. 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.

Zurn Elkay Water Solutions Corporation (ZWS) is the more profitable company, earning 11.

7% net margin versus 8. 6% for The Home Depot, Inc. — meaning it keeps 11. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ZWS leads at 17. 0% versus 12. 7% for HD. At the gross margin level — before operating expenses — ZWS leads at 41. 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.

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, Zurn Elkay Water Solutions Corporation (ZWS) is the more undervalued stock at a PEG of 0. 91x versus The Home Depot, Inc. 's 6. 01x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, The Home Depot, Inc. (HD) trades at 21. 5x forward P/E versus 29. 0x for Zurn Elkay Water Solutions Corporation — 7. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HD: 26. 5% to $408. 08.

All stocks in this comparison pay dividends.

The Home Depot, Inc. (HD) offers the highest yield at 2. 8%, versus 0. 7% for Zurn Elkay Water Solutions Corporation (ZWS).

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). Both have compounded well over 10 years (HD: +184. 0%, ZWS: +435. 0%), 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 (ZWS (Industrials) and HD (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

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.