ETN vs HD: Which Is the Better Buy?
Side-by-side comparison of Eaton Corporation plc and The Home Depot, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-08-06.
Eaton Corporation plc · Industrials
$447.28
-9.5% upside to fair value
Med Conviction
Grade C+
VS
The Home Depot, Inc. · 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 — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ETN |
HD |
| Current Price |
$447.28 |
$343.30 |
| Fair Value Estimate |
$405.00 |
$462.14 |
| Upside to Fair Value |
-9.5%
|
+34.6%
|
| Market Cap |
$173.7B |
$342.3B |
| Forward P/E |
33.2x
|
24.3x
|
| EV / EBITDA |
30.0x
|
16.5x
|
| Price / Sales |
5.8x
|
2.0x
|
| Price / FCF |
38.6x
|
23.9x
|
| Revenue Growth YoY |
+21.0%
|
+4.8%
|
| Gross Margin |
35.9%
|
33.1%
|
| Operating Margin |
17.7%
|
12.4%
|
| Return on Equity |
18.9%
|
113.3%
|
| Dividend Yield |
0.98% |
0% |
| FCF Yield |
2.59%
|
4.18%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Eaton is a 115-year-old power management company whose Electrical Americas, Electrical Global and Aerospace segments have become a core beneficiary of the same AI data-center, grid modernization and reshoring supercycle driving GE Vernova and Vertiv. Q2 2026 results were record-setting: revenue of $8.5 billion (up 21% year over year, 14% organic), adjusted EPS of $3.15, and segment margins of 23.…
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 |
ETN |
HD |
| Zone Low |
$305.00 |
$346.61 |
| Zone High |
$345.00 |
$392.82 |
| In Buy Zone? |
No
|
Yes
|