HD vs MA: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Mastercard Incorporated — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
VS
Mastercard Incorporated · Financial Services
$498.66
+22.3% upside to fair value
High Conviction
Grade A-
QuantHub Verdict
MA has more upside to fair value
(+22.3%).
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 |
MA |
| Current Price |
$337.34 |
$498.66 |
| Fair Value Estimate |
$378.00 |
$610.00 |
| Upside to Fair Value |
+12.1%
|
+22.3%
|
| Market Cap |
$336.0B |
$445.0B |
| Forward P/E |
23.0x
|
25.5x
|
| EV / EBITDA |
18.1x
|
22.4x
|
| Price / Sales |
2.3x
|
13.6x
|
| Price / FCF |
29.7x
|
26.0x
|
| Revenue Growth YoY |
+3.2%
|
+16.4%
|
| Gross Margin |
33.3%
|
83.4%
|
| Operating Margin |
12.7%
|
59.2%
|
| Return on Equity |
110.5%
|
198.4%
|
| Dividend Yield |
2.44% |
0.65% |
| FCF Yield |
3.37%
|
3.84%
|
| 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 …
Mastercard operates one of the world's two dominant payment networks, processing over $9 trillion in gross dollar volume annually across 220+ countries. The business generates 83% gross margins and 46% net margins with zero credit risk because Mastercard never lends money, only collecting tolls on every transaction. Value-Added Services (analytics, fraud prevention, cybersecurity) now comprise 41…
Accumulation Zones
| Metric |
HD |
MA |
| Zone Low |
$285.00 |
$460.00 |
| Zone High |
$320.00 |
$515.00 |
| In Buy Zone? |
No
|
Yes
|