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 2026-04-11.
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
VS
Honeywell International Inc. · Industrials
$235.04
-9.9% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
HD has more upside to fair value
(+12.1%).
HON trades at a lower forward P/E
(22.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
HON |
| Current Price |
$337.34 |
$235.04 |
| Fair Value Estimate |
$378.00 |
$211.73 |
| Upside to Fair Value |
+12.1%
|
-9.9%
|
| Market Cap |
$336.0B |
$149.4B |
| Forward P/E |
23.0x
|
22.3x
|
| EV / EBITDA |
18.1x
|
16.9x
|
| Price / Sales |
2.3x
|
4.0x
|
| Price / FCF |
29.7x
|
27.7x
|
| Revenue Growth YoY |
+3.2%
|
-2.7%
|
| Gross Margin |
33.3%
|
36.9%
|
| Operating Margin |
12.7%
|
17.7%
|
| Return on Equity |
110.5%
|
33.28%
|
| Dividend Yield |
2.44% |
1.92% |
| FCF Yield |
3.37%
|
3.61%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
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 …
Honeywell is a diversified industrial conglomerate in the final stages of a transformative three-way separation into Honeywell Aerospace, Solstice Advanced Materials, and a retained Automation entity, targeting Q3 2026 completion. The business generated 33% ROE and $5.4B in free cash flow on $37.4B revenue in FY2025, supported by a record $37B backlog with 23% organic order growth in Q4. At $235 …
Accumulation Zones
| Metric |
HD |
HON |
| Zone Low |
$285.00 |
$158.80 |
| Zone High |
$320.00 |
$179.97 |
| In Buy Zone? |
No
|
No
|