HD vs NFLX: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Netflix, Inc. — 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
Netflix, Inc. · Communication Services
$76.41
+44.0% 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 |
NFLX |
| Current Price |
$292.18 |
$76.41 |
| Fair Value Estimate |
$421.26 |
$110.00 |
| Upside to Fair Value |
+44.2%
|
+44.0%
|
| Market Cap |
$291.3B |
$318.2B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
14.7x
|
10.6x
|
| Price / Sales |
1.7x
|
6.6x
|
| Price / FCF |
19.2x
|
29.1x
|
| Revenue Growth YoY |
+5.7%
|
+13.4%
|
| Gross Margin |
33.2%
|
49.1%
|
| Operating Margin |
12.4%
|
29.7%
|
| Return on Equity |
102.7%
|
48.0%
|
| Dividend Yield |
3.18% |
0% |
| FCF Yield |
5.2%
|
3.44%
|
| 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…
Netflix is a global subscription and advertising-supported entertainment platform with a high-quality brand, content engine, recommendation technology and distribution scale, evidenced by more than 97 billion viewing hours in the first half of 2026 and an audience approaching one billion people. Fundamentals remain strong: revenue grew 13.4% year over year in the most recent quarter, TTM gross, o…
Accumulation Zones
| Metric |
HD |
NFLX |
| Zone Low |
$315.94 |
$82.50 |
| Zone High |
$358.07 |
$93.50 |
| In Buy Zone? |
Yes
|
Yes
|