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 2026-07-16.
The Home Depot, Inc. · Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
VS
Netflix, Inc. · Communication Services
$73.68
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
NFLX has more upside to fair value
(+45.0%).
NFLX trades at a lower forward P/E
(23.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
NFLX |
| Current Price |
$343.30 |
$73.68 |
| Fair Value Estimate |
$462.14 |
$106.84 |
| Upside to Fair Value |
+34.6%
|
+45.0%
|
| Market Cap |
$342.3B |
$310.2B |
| Forward P/E |
24.3x
|
23.3x
|
| EV / EBITDA |
16.5x
|
9.2x
|
| Price / Sales |
2.0x
|
6.6x
|
| Price / FCF |
23.9x
|
26.1x
|
| Revenue Growth YoY |
+4.8%
|
+16.2%
|
| Gross Margin |
33.1%
|
49.0%
|
| Operating Margin |
12.4%
|
29.7%
|
| Return on Equity |
113.3%
|
49.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.18%
|
3.83%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
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 …
Netflix, Inc. operates as a leading global streaming entertainment service, delivering a wide variety of TV series, documentaries, and feature films across multiple genres and languages. The company exhibits high business quality with a durable competitive moat supported by strong brand recognition, intangible assets, and network effects. Its recent financial performance shows robust earnings gro…
Accumulation Zones
| Metric |
HD |
NFLX |
| Zone Low |
$346.61 |
$80.13 |
| Zone High |
$392.82 |
$90.81 |
| In Buy Zone? |
Yes
|
Yes
|