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 2026-09-26.
The Home Depot, Inc. · Consumer Cyclical
$292.18
+44.2% upside to fair value
Med Conviction
Grade B
High Quality
VS
Eli Lilly and Company · Healthcare
$1,183.72
+2.1% upside to fair value
Med Conviction
Grade B
High Quality
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 |
LLY |
| Current Price |
$292.18 |
$1,183.72 |
| Fair Value Estimate |
$421.26 |
$1,208.00 |
| Upside to Fair Value |
+44.2%
|
+2.1%
|
| Market Cap |
$291.3B |
$1,114.8B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
14.7x
|
26.8x
|
| Price / Sales |
1.7x
|
14.0x
|
| Price / FCF |
19.2x
|
52.7x
|
| Revenue Growth YoY |
+5.7%
|
+47.7%
|
| Gross Margin |
33.2%
|
83.4%
|
| Operating Margin |
12.4%
|
49.7%
|
| Return on Equity |
102.7%
|
92.6%
|
| Dividend Yield |
3.18% |
0.57% |
| FCF Yield |
5.2%
|
1.9%
|
| Analyst Consensus |
Strong Buy
|
Strong 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…
Eli Lilly is a global pharmaceutical company whose incretin franchise, led by Mounjaro and Zepbound, has become the dominant growth engine in diabetes and obesity care. The business quality is high: TTM gross margin is 83.4%, TTM operating margin is 49.7%, TTM net margin is 33.5%, and ROE is 92.6%, while revenue grew 47.7% and earnings grew 25.3% in the most recent quarter on a year-over-year bas…
Accumulation Zones
| Metric |
HD |
LLY |
| Zone Low |
$315.94 |
$906.00 |
| Zone High |
$358.07 |
$1,026.80 |
| In Buy Zone? |
Yes
|
No
|