The Home Depot, Inc. (HD) vs Lowe's Companies, Inc. (LOW)

The Home Depot, Inc. and Lowe's Companies, Inc. are both Home Improvement Retail companies. The Home Depot, Inc. is the larger, with a market value of $307.5B against $109.8B — 2.8× the size. Lowe's Companies, Inc. trades at the lower P/E: 16.7× against 21.6×. Lowe's Companies, Inc. grew revenue faster over the last twelve months: 8.15% against 2.50%. The Home Depot, Inc. has the higher net margin (8.41% vs 7.32%) and the lower return on invested capital (19.5% vs 24.1%). Both pay a dividend; Lowe's Companies, Inc. yields more (3.09% vs 3.00%). Across the 22 metrics below, Lowe's Companies, Inc. leads on 14 and The Home Depot, Inc. on 8.

Valuation

Metric HD LOW Home Improvement Retail median
P/E 21.60 16.67 20.86
P/S 1.82 1.22 0.58
P/B 18.50 n/m 1.46
Price to free cash flow 20.36 15.58 15.58
EV/EBITDA 14.14 11.33 8.69
EV/Sales 2.12 1.60 0.55
Earnings yield 4.63% 6.00% 4.75%
Free cash flow yield 4.91% 6.42% 6.42%

Profitability

Metric HD LOW Home Improvement Retail median
Gross margin 33.21% 33.08% 44.86%
Operating margin 12.43% 11.38% 3.34%
Net margin 8.41% 7.32% 4.93%
Free cash flow margin 8.93% 7.83% 5.08%
Return on equity 104.30% (70.33%) 7.62%
Return on assets 13.59% 12.93% 3.52%
Return on invested capital 19.49% 24.08% 7.92%

Growth

Metric HD LOW Home Improvement Retail median
Revenue growth (TTM) 2.50% 8.15% 2.42%
EPS growth (last fiscal year) (4.56%) (3.11%) (0.87%)
Revenue growth, 5-year CAGR 4.51% (0.75%) 4.51%
Net income growth, 5-year CAGR 1.93% 2.69% 1.36%

Health

Metric HD LOW Home Improvement Retail median
Debt to equity 3.18 (5.05) 0.17
Current ratio 1.08 1.10 1.33
Net debt to EBITDA 2.17 3.12 1.45

Dividend

Metric HD LOW Home Improvement Retail median
Dividend yield 3.00% 3.09% —
Payout ratio 0.65 0.52 —

Size

Metric HD LOW Home Improvement Retail median
Market cap 307.53b 109.81b 456.85m

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