HD vs MSFT: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Microsoft Corporation — 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
Microsoft Corporation · Technology
$372.20
+32.4% upside to fair value
High Conviction
Grade A
QuantHub Verdict
MSFT has more upside to fair value
(+32.4%).
MSFT trades at a lower forward P/E
(22.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
MSFT |
| Current Price |
$337.34 |
$372.20 |
| Fair Value Estimate |
$378.00 |
$493.00 |
| Upside to Fair Value |
+12.1%
|
+32.4%
|
| Market Cap |
$336.0B |
$2,763.6B |
| Forward P/E |
23.0x
|
22.0x
|
| EV / EBITDA |
18.1x
|
17.5x
|
| Price / Sales |
2.3x
|
9.1x
|
| Price / FCF |
29.7x
|
35.8x
|
| Revenue Growth YoY |
+3.2%
|
+14.9%
|
| Gross Margin |
33.3%
|
68.8%
|
| Operating Margin |
12.7%
|
45.6%
|
| Return on Equity |
110.5%
|
29.6%
|
| Dividend Yield |
2.44% |
0.94% |
| FCF Yield |
3.37%
|
2.8%
|
| 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 …
Microsoft is the world's largest software company, operating a three-pillar empire across cloud (Azure), productivity (Office 365/Teams), and personal computing (Windows/Xbox). Azure is the second-largest cloud platform globally with 24% market share and growing at 38-39% in constant currency, while Microsoft Cloud revenue crossed $168.9B in FY2025. The stock has dropped 33% from its highs to $37…
Accumulation Zones
| Metric |
HD |
MSFT |
| Zone Low |
$285.00 |
$370.00 |
| Zone High |
$320.00 |
$419.00 |
| In Buy Zone? |
No
|
Yes
|