HD vs MS: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Morgan Stanley — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
The Home Depot, Inc. · Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
VS
Morgan Stanley · Financial Services
$218.37
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
MS has more upside to fair value
(+45.0%).
MS trades at a lower forward P/E
(23.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
MS |
| Current Price |
$343.30 |
$218.37 |
| Fair Value Estimate |
$462.14 |
$316.64 |
| Upside to Fair Value |
+34.6%
|
+45.0%
|
| Market Cap |
$342.3B |
$344.4B |
| Forward P/E |
24.3x
|
23.6x
|
| EV / EBITDA |
16.5x
|
9.8x
|
| Price / Sales |
2.0x
|
2.7x
|
| Price / FCF |
23.9x
|
-327.4x
|
| Revenue Growth YoY |
+4.8%
|
+22.4%
|
| Gross Margin |
33.1%
|
56.6%
|
| Operating Margin |
12.4%
|
28.4%
|
| Return on Equity |
113.3%
|
23.4%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.18%
|
—
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
The Home Depot, Inc. operates as a leading home improvement retailer in the consumer cyclical sector, leveraging a strong brand and cost advantages to maintain a durable competitive moat. Despite a modest revenue growth of 4.8% and a decline in earnings by 4.2% in the most recent quarter, the company exhibits exceptional profitability metrics including a 113.3% return on equity and solid margins …
Morgan Stanley is a leading global financial services firm specializing in capital markets, wealth management, and investment banking. The company demonstrates high business quality with a strong return on equity of 23.4% and robust revenue growth of 22.4% in the most recent quarter, alongside impressive earnings growth of 57.7% in the same period. Its gross margin of 56.6% and net margin of 20.2…
Accumulation Zones
| Metric |
HD |
MS |
| Zone Low |
$346.61 |
$237.48 |
| Zone High |
$392.82 |
$269.14 |
| In Buy Zone? |
Yes
|
Yes
|