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 2026-09-25.
The Home Depot, Inc. · Consumer Cyclical
$292.18
+44.2% upside to fair value
Med Conviction
Grade B
High Quality
VS
Microsoft Corporation · Technology
$497.12
+41.3% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
HD has more upside to fair value
(+44.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HD |
MSFT |
| Current Price |
$292.18 |
$497.12 |
| Fair Value Estimate |
$421.26 |
$702.35 |
| Upside to Fair Value |
+44.2%
|
+41.3%
|
| Market Cap |
$291.3B |
$3,691.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
14.7x
|
18.3x
|
| Price / Sales |
1.7x
|
11.1x
|
| Price / FCF |
19.2x
|
55.1x
|
| Revenue Growth YoY |
+5.7%
|
+17.7%
|
| Gross Margin |
33.2%
|
67.9%
|
| Operating Margin |
12.4%
|
46.8%
|
| Return on Equity |
102.7%
|
33.2%
|
| Dividend Yield |
3.18% |
0.73% |
| FCF Yield |
5.2%
|
1.81%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
The Home Depot is the largest home-improvement retailer in the United States, operating a network of roughly 2,300 stores supported by about 472,400 full-time employees, and serving both do-it-yourself homeowners and professional contractors through stores, homedepot.com, and specialty sites such as blinds.com. The business quality is high: it generates a 102.7% return on equity, a 33.2% trailing…
Microsoft is a global infrastructure-software platform spanning Azure, Microsoft 365, security, Dynamics, Windows, GitHub and AI copilots, with high business quality supported by enterprise distribution, explicitly cited switching costs, a $678 billion commercial RPO balance, 67.9% TTM gross margin, 46.8% TTM operating margin, 40.3% TTM net margin and 33.2% ROE. Revenue grew 17.7% and earnings gr…
Accumulation Zones
| Metric |
HD |
MSFT |
| Zone Low |
$315.94 |
$526.76 |
| Zone High |
$358.07 |
$597.00 |
| In Buy Zone? |
Yes
|
Yes
|