HD vs. LOW, COST, BABA, MCD, WMT, PDD, BKNG, TJX, CMG, and MELI
Should you be buying Home Depot stock or one of its competitors? The main competitors of Home Depot include Lowe's Companies (LOW), Costco Wholesale (COST), Alibaba Group (BABA), McDonald's (MCD), Walmart (WMT), PDD (PDD), Booking (BKNG), TJX Companies (TJX), Chipotle Mexican Grill (CMG), and MercadoLibre (MELI). These companies are all part of the "retail/wholesale" sector.
Home Depot (NYSE:HD) and Lowe's Companies (NYSE:LOW) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their media sentiment, risk, analyst recommendations, community ranking, dividends, earnings, profitability, valuation and institutional ownership.
Home Depot has higher revenue and earnings than Lowe's Companies. Lowe's Companies is trading at a lower price-to-earnings ratio than Home Depot, indicating that it is currently the more affordable of the two stocks.
Home Depot presently has a consensus price target of $375.19, indicating a potential upside of 7.99%. Lowe's Companies has a consensus price target of $252.67, indicating a potential upside of 6.97%. Given Home Depot's stronger consensus rating and higher possible upside, equities research analysts plainly believe Home Depot is more favorable than Lowe's Companies.
Home Depot pays an annual dividend of $9.00 per share and has a dividend yield of 2.6%. Lowe's Companies pays an annual dividend of $4.40 per share and has a dividend yield of 1.9%. Home Depot pays out 59.6% of its earnings in the form of a dividend. Lowe's Companies pays out 33.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Home Depot has a net margin of 9.92% compared to Lowe's Companies' net margin of 8.94%. Home Depot's return on equity of 1,452.22% beat Lowe's Companies' return on equity.
Home Depot received 311 more outperform votes than Lowe's Companies when rated by MarketBeat users. Likewise, 71.57% of users gave Home Depot an outperform vote while only 70.02% of users gave Lowe's Companies an outperform vote.
Home Depot has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Lowe's Companies has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.
70.9% of Home Depot shares are owned by institutional investors. Comparatively, 74.1% of Lowe's Companies shares are owned by institutional investors. 0.1% of Home Depot shares are owned by insiders. Comparatively, 0.3% of Lowe's Companies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
In the previous week, Home Depot had 21 more articles in the media than Lowe's Companies. MarketBeat recorded 43 mentions for Home Depot and 22 mentions for Lowe's Companies. Lowe's Companies' average media sentiment score of 0.62 beat Home Depot's score of 0.34 indicating that Lowe's Companies is being referred to more favorably in the news media.
Summary
Home Depot beats Lowe's Companies on 15 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding HD and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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