AMZN vs HD: Which Is the Better Buy?
Side-by-side comparison of Amazon.com, Inc. and The Home Depot, Inc. β fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-13.
Amazon.com, Inc. Β· Consumer Cyclical
$242.67
+22.0% upside to fair value
Grade B
High Quality
VS
The Home Depot, Inc. Β· Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
QuantHub Verdict
HD has more upside to fair value
(+34.6%).
HD trades at a lower forward P/E
(24.3x).
These are model outputs β not personalized investment advice.
See all research β
Valuation & Fundamentals
| Metric |
AMZN |
HD |
| Current Price |
$242.67 |
$343.30 |
| Fair Value Estimate |
$295.95 |
$462.14 |
| Upside to Fair Value |
+22.0%
|
+34.6%
|
| Market Cap |
$2,610.4B |
$342.3B |
| Forward P/E |
28.7x
|
24.3x
|
| EV / EBITDA |
14.4x
|
16.5x
|
| Price / Sales |
3.5x
|
2.0x
|
| Price / FCF |
-1056.0x
|
23.9x
|
| Revenue Growth YoY |
+16.6%
|
+4.8%
|
| Gross Margin |
50.6%
|
33.1%
|
| Operating Margin |
11.5%
|
12.4%
|
| Return on Equity |
23.3%
|
113.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
β
|
4.18%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Amazon.com, Inc. operates a diversified platform with core engines in retail, AWS cloud services, and advertising, leveraging a strong competitive moat driven by scale, logistics, and technology leadership. The company exhibits high business quality with 23.3% ROE, 16.6% revenue growth, and 76.7% earnings growth in the most recent quarter, supported by a widening moat in e-commerce and cloud. Desβ¦
The Home Depot, Inc. operates as a leading home improvement retailer in the consumer cyclical sector, leveraging a strong brand and cost advantages to maintain a durable competitive moat. Despite a modest revenue growth of 4.8% and a decline in earnings by 4.2% in the most recent quarter, the company exhibits exceptional profitability metrics including a 113.3% return on equity and solid margins β¦
Accumulation Zones
| Metric |
AMZN |
HD |
| Zone Low |
$221.96 |
$346.61 |
| Zone High |
$251.56 |
$392.82 |
| In Buy Zone? |
Yes
|
Yes
|