HD vs LULU: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Lululemon Athletica Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-06-20.
The Home Depot, Inc. · Consumer Cyclical
$334.28
+34.7% upside to fair value
Grade A
High Quality
VS
Lululemon Athletica Inc. · Consumer Cyclical
$111.77
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
LULU has more upside to fair value
(+45.0%).
LULU trades at a lower forward P/E
(9.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
LULU |
| Current Price |
$334.28 |
$111.77 |
| Fair Value Estimate |
$450.15 |
$162.07 |
| Upside to Fair Value |
+34.7%
|
+45.0%
|
| Market Cap |
$333.3B |
$12.7B |
| Forward P/E |
23.7x
|
9.1x
|
| EV / EBITDA |
16.1x
|
5.1x
|
| Price / Sales |
2.0x
|
1.1x
|
| Price / FCF |
23.3x
|
9.9x
|
| Revenue Growth YoY |
+4.8%
|
+4.3%
|
| Gross Margin |
33.1%
|
55.7%
|
| Operating Margin |
12.4%
|
18.2%
|
| Return on Equity |
113.3%
|
31.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.3%
|
10.08%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
The Home Depot, Inc. is the leading U.S. home improvement retailer with a dominant market share of approximately 47 to 50 percent, significantly ahead of Lowe's at 17 to 19 percent. The company benefits from a durable competitive moat driven by scale, a robust supply chain, and a pro-customer infrastructure. Its management team is composed of long-tenured insiders, including CEO Ted Decker who ha…
Lululemon Athletica Inc. operates in the premium athletic apparel retail sector, leveraging a strong brand and a durable competitive moat driven by product innovation and global expansion, particularly in China. The company has demonstrated solid capital allocation with organic growth and buybacks, though it faces near-term earnings pressure with a 38% decline in quarterly earnings year-over-year…
Accumulation Zones
| Metric |
HD |
LULU |
| Zone Low |
$337.61 |
$121.55 |
| Zone High |
$382.63 |
$137.76 |
| In Buy Zone? |
Yes
|
Yes
|