Floor & Decor Holdings, Inc. (FND) vs The Home Depot, Inc. (HD)

Floor & Decor Holdings, Inc. and The Home Depot, Inc. are both Home Improvement Retail companies. The Home Depot, Inc. is the larger, with a market value of $307.5B against $4.9B — 63.1× the size. Floor & Decor Holdings, Inc. trades at the lower P/E: 21.0× against 21.6×. The Home Depot, Inc. grew revenue faster over the last twelve months: 2.50% against 2.42%. The Home Depot, Inc. has the higher net margin (8.41% vs 4.93%) and the higher return on invested capital (19.5% vs 7.92%). Across the 22 metrics below, Floor & Decor Holdings, Inc. leads on 12 and The Home Depot, Inc. on 10.

Valuation

Metric FND HD Home Improvement Retail median
P/E 21.05 21.60 20.86
P/S 1.04 1.82 0.58
P/B 1.95 18.50 1.46
Price to free cash flow 23.07 20.36 15.58
EV/EBITDA 8.69 14.14 8.69
EV/Sales 1.01 2.12 0.55
Earnings yield 4.75% 4.63% 4.75%
Free cash flow yield 4.34% 4.91% 6.42%

Profitability

Metric FND HD Home Improvement Retail median
Gross margin 44.86% 33.21% 44.86%
Operating margin 6.37% 12.43% 3.34%
Net margin 4.93% 8.41% 4.93%
Free cash flow margin 4.49% 8.93% 5.08%
Return on equity 9.69% 104.30% 7.62%
Return on assets 4.17% 13.59% 3.52%
Return on invested capital 7.92% 19.49% 7.92%

Growth

Metric FND HD Home Improvement Retail median
Revenue growth (TTM) 2.42% 2.50% 2.42%
EPS growth (last fiscal year) 1.05% (4.56%) (0.87%)
Revenue growth, 5-year CAGR 14.07% 4.51% 4.51%
Net income growth, 5-year CAGR 1.36% 1.93% 1.36%

Health

Metric FND HD Home Improvement Retail median
Debt to equity 0.08 3.18 0.17
Current ratio 1.33 1.08 1.33
Net debt to EBITDA (0.10) 2.17 1.45

Dividend

Metric FND HD Home Improvement Retail median
Dividend yield — 3.00% —
Payout ratio — 0.65 —

Size

Metric FND HD Home Improvement Retail median
Market cap 4.87b 307.53b 456.85m

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