LOW vs. HD, BLDR, FND, JCTC, COST, MCD, BABA, BKNG, TJX, and SBUX
Should you be buying Lowe's Companies stock or one of its competitors? The main competitors of Lowe's Companies include Home Depot (HD), Builders FirstSource (BLDR), Floor & Decor (FND), Jewett-Cameron Trading (JCTC), Costco Wholesale (COST), McDonald's (MCD), Alibaba Group (BABA), Booking (BKNG), TJX Companies (TJX), and Starbucks (SBUX). These companies are all part of the "retail/wholesale" sector.
Lowe's Companies vs.
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 businesses based on the strength of their institutional ownership, community ranking, media sentiment, earnings, risk, analyst recommendations, profitability, dividends and valuation.
Home Depot currently has a consensus target price of $426.00, suggesting a potential upside of 4.05%. Lowe's Companies has a consensus target price of $280.85, suggesting a potential upside of 7.44%. Given Lowe's Companies' higher possible upside, analysts clearly believe Lowe's Companies is more favorable than Home Depot.
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 pays an annual dividend of $9.00 per share and has a dividend yield of 2.2%. Lowe's Companies pays an annual dividend of $4.60 per share and has a dividend yield of 1.8%. Home Depot pays out 61.1% of its earnings in the form of a dividend. Lowe's Companies pays out 38.4% 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 increased its dividend for 15 consecutive years and Lowe's Companies has increased its dividend for 53 consecutive years.
In the previous week, Home Depot had 35 more articles in the media than Lowe's Companies. MarketBeat recorded 86 mentions for Home Depot and 51 mentions for Lowe's Companies. Home Depot's average media sentiment score of 1.45 beat Lowe's Companies' score of 1.43 indicating that Home Depot is being referred to more favorably in the media.
Home Depot has a net margin of 9.45% compared to Lowe's Companies' net margin of 8.19%. Home Depot's return on equity of 452.60% beat Lowe's Companies' return on equity.
Home Depot has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Lowe's Companies has a beta of 1.11, suggesting that its share price is 11% 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 company insiders. Comparatively, 0.3% of Lowe's Companies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Home Depot received 310 more outperform votes than Lowe's Companies when rated by MarketBeat users. Likewise, 71.42% of users gave Home Depot an outperform vote while only 69.50% of users gave Lowe's Companies an outperform vote.
Summary
Home Depot beats Lowe's Companies on 15 of the 21 factors compared between the two stocks.
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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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This page (NYSE:LOW) was last updated on 1/20/2025 by MarketBeat.com Staff