AMZN vs HD: Which Is the Better Buy?
Side-by-side comparison of Amazon.com, Inc. and The Home Depot, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
Amazon.com, Inc. · Consumer Cyclical
$259.34
+21.8% upside to fair value
Grade B
High Quality
VS
The Home Depot, Inc. · Consumer Cyclical
$302.44
+22.0% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
HD has more upside to fair value
(+22.0%).
HD trades at a lower forward P/E
(20.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMZN |
HD |
| Current Price |
$259.34 |
$302.44 |
| Fair Value Estimate |
$316.00 |
$369.00 |
| Upside to Fair Value |
+21.8%
|
+22.0%
|
| Market Cap |
$2,789.8B |
$301.2B |
| Forward P/E |
26.5x
|
20.5x
|
| EV / EBITDA |
16.8x
|
16.5x
|
| Price / Sales |
3.9x
|
2.0x
|
| Price / FCF |
—
|
26.6x
|
| Revenue Growth YoY |
+17.0%
|
+4.8%
|
| Gross Margin |
51.8%
|
33.3%
|
| Operating Margin |
13.1%
|
12.7%
|
| Return on Equity |
21.5%
|
110.5%
|
| Dividend Yield |
0% |
2.72% |
| FCF Yield |
-0.81%
|
3.75%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Amazon delivered a landmark Q1 2026 with revenue of $181.5 billion up 17% year over year and diluted EPS of $2.78 versus the $1.63 consensus, driven by AWS reaccelerating to 28% growth, its fastest pace in fifteen quarters, and a record consolidated operating margin of 13.1%. AWS generated $37.6 billion in revenue at a 37.7% segment operating margin, contributing $14.2 billion in operating income…
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and an expanding Pro contractor segment bolstered by the SRS Distribution acquisition. Q1 FY2026 results released May 19 beat both the top and bottom line, with revenue of $41.77B up 4.8% year over year and adjusted EPS of $3.43 versus the $3.41 consensus. Comp sales grew only 0.6% howe…
Accumulation Zones
| Metric |
AMZN |
HD |
| Zone Low |
$237.00 |
$276.75 |
| Zone High |
$268.60 |
$313.65 |
| In Buy Zone? |
Yes
|
Yes
|