HD vs HON: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Honeywell International Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-14.
The Home Depot, Inc. · Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
VS
Honeywell International Inc. · Industrials
$222.25
-5.5% upside to fair value
Grade D
High Quality
QuantHub Verdict
HD has more upside to fair value
(+34.6%).
HON trades at a lower forward P/E
(15.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
HON |
| Current Price |
$343.30 |
$222.25 |
| Fair Value Estimate |
$462.14 |
$210.05 |
| Upside to Fair Value |
+34.6%
|
-5.5%
|
| Market Cap |
$342.3B |
$70.4B |
| Forward P/E |
24.3x
|
15.7x
|
| EV / EBITDA |
16.5x
|
13.1x
|
| Price / Sales |
2.0x
|
1.9x
|
| Price / FCF |
23.9x
|
17.1x
|
| Revenue Growth YoY |
+4.8%
|
-6.9%
|
| Gross Margin |
33.1%
|
36.9%
|
| Operating Margin |
12.4%
|
14.9%
|
| Return on Equity |
113.3%
|
23.6%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.18%
|
5.84%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
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 …
Honeywell International Inc. operates as a diversified industrial conglomerate with a strong presence in multiple sectors including aerospace, building technologies, and performance materials. The company demonstrates high business quality with a durable competitive moat supported by strong margins, a 23.6% return on equity, and solid free cash flow generation of $16.78 per share. However, recent…
Accumulation Zones
| Metric |
HD |
HON |
| Zone Low |
$346.61 |
$157.54 |
| Zone High |
$392.82 |
$178.54 |
| In Buy Zone? |
Yes
|
No
|