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 2026-05-20.
The Home Depot, Inc. · Consumer Cyclical
$302.44
+22.0% upside to fair value
Med Conviction
Grade B+
VS
Mastercard Incorporated · Financial Services
$499.81
+5.0% upside to fair value
Grade B+
High Quality
QuantHub Verdict
HD has more upside to fair value
(+22.0%).
HD trades at a lower forward P/E
(20.5x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HD |
MA |
| Current Price |
$302.44 |
$499.81 |
| Fair Value Estimate |
$369.00 |
$525.00 |
| Upside to Fair Value |
+22.0%
|
+5.0%
|
| Market Cap |
$301.2B |
$441.6B |
| Forward P/E |
20.5x
|
28.6x
|
| EV / EBITDA |
16.5x
|
21.3x
|
| Price / Sales |
2.0x
|
13.0x
|
| Price / FCF |
26.6x
|
24.9x
|
| Revenue Growth YoY |
+4.8%
|
+15.8%
|
| Gross Margin |
33.3%
|
83.0%
|
| Operating Margin |
12.7%
|
59.4%
|
| Return on Equity |
110.5%
|
206.1%
|
| Dividend Yield |
2.72% |
0.6% |
| FCF Yield |
3.75%
|
4.01%
|
| 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 an expanding Pro contractor segment bolstered by the SRS Distribution acquisition. Q1 FY2026 results released May 19 beat both the top and bottom line, with revenue of $41.77B up 4.8% year over year and adjusted EPS of $3.43 versus the $3.41 consensus. Comp sales grew only 0.6% howe…
Mastercard is one of two global payment network duopolists alongside Visa, with structurally high margins (83% gross, 59% operating, 46% net), powerful network effects, and durable secular tailwinds from the ongoing cash-to-card and card-to-digital migration. Q1 2026 results reported April 30 showed revenue of $8.40 billion (+15.8% YoY) and EPS of $4.35 (+20.8% YoY), driven by continued cross-bor…
Accumulation Zones
| Metric |
HD |
MA |
| Zone Low |
$276.75 |
$393.75 |
| Zone High |
$313.65 |
$446.25 |
| In Buy Zone? |
Yes
|
No
|