HD vs KO: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and The Coca-Cola Company — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
VS
The Coca-Cola Company · Consumer Defensive
$78.19
-7.8% upside to fair value
Grade D
High Quality
QuantHub Verdict
HD has more upside to fair value
(+12.1%).
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 |
HD |
KO |
| Current Price |
$337.34 |
$78.19 |
| Fair Value Estimate |
$378.00 |
$72.12 |
| Upside to Fair Value |
+12.1%
|
-7.8%
|
| Market Cap |
$336.0B |
$336.5B |
| Forward P/E |
23.0x
|
24.6x
|
| EV / EBITDA |
18.1x
|
19.9x
|
| Price / Sales |
2.3x
|
6.8x
|
| Price / FCF |
29.7x
|
26.8x
|
| Revenue Growth YoY |
+3.2%
|
+12.1%
|
| Gross Margin |
33.3%
|
61.7%
|
| Operating Margin |
12.7%
|
29.3%
|
| Return on Equity |
110.5%
|
43.6%
|
| Dividend Yield |
2.44% |
0% |
| FCF Yield |
3.37%
|
3.73%
|
| Analyst Consensus |
Buy
|
Strong 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 …
The Coca-Cola Company is a leading global beverage company specializing in non-alcoholic drinks with a diversified portfolio including sparkling soft drinks, juices, water, coffee, and energy beverages. The business quality is high due to its durable brand moat, consistent earnings growth, and strong operational efficiency, reflected in a 43.6% return on equity and 12.1% revenue growth in the mos…
Accumulation Zones
| Metric |
HD |
KO |
| Zone Low |
$285.00 |
$54.09 |
| Zone High |
$320.00 |
$61.30 |
| In Buy Zone? |
No
|
No
|