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
AMZN β€” Amazon.com, Inc.
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. Des…
HD β€” The Home Depot, Inc.
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 …
Accumulation Zones
Metric AMZN HD
Zone Low $221.96 $346.61
Zone High $251.56 $392.82
In Buy Zone? Yes Yes
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