ADBE vs HD: Which Is the Better Buy?
Side-by-side comparison of Adobe Inc. and The Home Depot, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
Adobe Inc. · Technology
$238.25
+13.5% upside to fair value
Med Conviction
Grade B
High Quality
VS
The Home Depot, Inc. · Consumer Cyclical
$292.18
+44.2% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
HD has more upside to fair value
(+44.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
ADBE |
HD |
| Current Price |
$238.25 |
$292.18 |
| Fair Value Estimate |
$270.38 |
$421.26 |
| Upside to Fair Value |
+13.5%
|
+44.2%
|
| Market Cap |
$94.7B |
$291.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
9.5x
|
14.7x
|
| Price / Sales |
3.6x
|
1.7x
|
| Price / FCF |
8.6x
|
19.2x
|
| Revenue Growth YoY |
+12.9%
|
+5.7%
|
| Gross Margin |
89.1%
|
33.2%
|
| Operating Margin |
35.7%
|
12.4%
|
| Return on Equity |
62.9%
|
102.7%
|
| Dividend Yield |
0% |
3.18% |
| FCF Yield |
11.63%
|
5.2%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
Adobe is a global software provider organized into Digital Media, Digital Experience, and Publishing and Advertising, with Creative Cloud as its subscription flagship and Document Cloud as its cloud-native document platform. The business quality is high on fundamentals: TTM gross margin of 89.1%, TTM operating margin of 35.7%, TTM net margin of 28.0%, ROE of 62.9%, and free cash flow of $27.69 pe…
The Home Depot is the largest home-improvement retailer in the United States, operating a network of roughly 2,300 stores supported by about 472,400 full-time employees, and serving both do-it-yourself homeowners and professional contractors through stores, homedepot.com, and specialty sites such as blinds.com. The business quality is high: it generates a 102.7% return on equity, a 33.2% trailing…
Accumulation Zones
| Metric |
ADBE |
HD |
| Zone Low |
$202.78 |
$315.94 |
| Zone High |
$229.82 |
$358.07 |
| In Buy Zone? |
No
|
Yes
|