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 2026-09-26.
The Home Depot, Inc. · Consumer Cyclical
$292.18
+44.2% upside to fair value
Med Conviction
Grade B
High Quality
VS
Honeywell International Inc. · Industrials
$212.55
-8.5% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
HD has more upside to fair value
(+44.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HD |
HON |
| Current Price |
$292.18 |
$212.55 |
| Fair Value Estimate |
$421.26 |
$194.50 |
| Upside to Fair Value |
+44.2%
|
-8.5%
|
| Market Cap |
$291.3B |
$67.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
14.7x
|
7.4x
|
| Price / Sales |
1.7x
|
1.9x
|
| Price / FCF |
19.2x
|
16.4x
|
| Revenue Growth YoY |
+5.7%
|
-6.1%
|
| Gross Margin |
33.2%
|
36.6%
|
| Operating Margin |
12.4%
|
14.1%
|
| Return on Equity |
102.7%
|
41.7%
|
| Dividend Yield |
3.18% |
2.09% |
| FCF Yield |
5.2%
|
6.11%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
The Home Depot is the largest home-improvement retailer in the United States, operating a network of roughly 2,300 stores supported by about 472,400 full-time employees, and serving both do-it-yourself homeowners and professional contractors through stores, homedepot.com, and specialty sites such as blinds.com. The business quality is high: it generates a 102.7% return on equity, a 33.2% trailing…
Honeywell International Inc. is a 101,000-employee diversified industrial technology and manufacturing conglomerate, led by CEO Vimal Kapur, spanning Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. Business quality is solid but not exceptional: the company carries a durable intangible-asset and switching-cost moat in aerospace avion…
Accumulation Zones
| Metric |
HD |
HON |
| Zone Low |
$315.94 |
$145.88 |
| Zone High |
$358.07 |
$165.32 |
| In Buy Zone? |
Yes
|
No
|