HD vs LLY: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Eli Lilly and Company — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
The Home Depot, Inc. · Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
VS
Eli Lilly and Company · Healthcare
$1,179.09
+31.7% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
HD has more upside to fair value
(+34.6%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HD |
LLY |
| Current Price |
$343.30 |
$1,179.09 |
| Fair Value Estimate |
$462.14 |
$1,552.32 |
| Upside to Fair Value |
+34.6%
|
+31.7%
|
| Market Cap |
$342.3B |
$1,110.4B |
| Forward P/E |
24.3x
|
—
|
| EV / EBITDA |
16.5x
|
34.3x
|
| Price / Sales |
2.0x
|
14.6x
|
| Price / FCF |
23.9x
|
77.7x
|
| Revenue Growth YoY |
+4.8%
|
+55.5%
|
| Gross Margin |
33.1%
|
83.5%
|
| Operating Margin |
12.4%
|
45.9%
|
| Return on Equity |
113.3%
|
101.3%
|
| Dividend Yield |
0% |
0.55% |
| FCF Yield |
4.18%
|
1.29%
|
| 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 …
Eli Lilly is a global biopharma company whose exceptionally profitable cardiometabolic franchises, led by Mounjaro and Zepbound, are driving a high-quality growth phase: revenue rose 55.5% year over year and earnings rose 168.0% year over year in the most recent quarter, while gross, operating, and net margins were 83.5%, 45.9%, and 35.0%, respectively. Business quality is high because tirzepatid…
Accumulation Zones
| Metric |
HD |
LLY |
| Zone Low |
$346.61 |
$1,164.24 |
| Zone High |
$392.82 |
$1,319.47 |
| In Buy Zone? |
Yes
|
Yes
|