DHR vs HD: Which Is the Better Buy?
Side-by-side comparison of Danaher Corporation and The Home Depot, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
Danaher Corporation · Healthcare
$174.04
+13.2% upside to fair value
Grade B
VS
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
DHR has more upside to fair value
(+13.2%).
HD trades at a lower forward P/E
(23.0x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
DHR |
HD |
| Current Price |
$174.04 |
$337.34 |
| Fair Value Estimate |
$197.01 |
$378.00 |
| Upside to Fair Value |
+13.2%
|
+12.1%
|
| Market Cap |
$123.2B |
$336.0B |
| Forward P/E |
33.4x
|
23.0x
|
| EV / EBITDA |
20.3x
|
18.1x
|
| Price / Sales |
5.0x
|
2.3x
|
| Price / FCF |
23.3x
|
29.7x
|
| Revenue Growth YoY |
+3.7%
|
+3.2%
|
| Gross Margin |
60.7%
|
33.3%
|
| Operating Margin |
21.0%
|
12.7%
|
| Return on Equity |
7.1%
|
110.5%
|
| Dividend Yield |
0% |
2.44% |
| FCF Yield |
4.3%
|
3.37%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Danaher Corporation is a diversified healthcare company focused on medical diagnostics, life sciences, and biotechnology, generating approximately $24 billion in revenue with a strong recurring revenue base of over 81%. The company benefits from a high gross margin of 60.7% and solid operating margin of 21%, supported by a seasoned management team with a proven capital allocation track record inc…
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and a rapidly growing Pro contractor segment bolstered by the SRS Distribution acquisition. The stock has declined 21% from its $427 high to $337, but now trades at 2.28x P/S, near the 5-year median of 2.31x, and 26.5x P/E which is above the 5-year median of 23.5x. EPS declined 4.6% in …
Accumulation Zones
| Metric |
DHR |
HD |
| Zone Low |
$147.76 |
$285.00 |
| Zone High |
$167.46 |
$320.00 |
| In Buy Zone? |
No
|
No
|