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. See all research →
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
HD — The Home Depot, Inc.
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…
LLY — Eli Lilly and Company
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
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