HD vs NKE: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and NIKE, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
The Home Depot, Inc. · Consumer Cyclical
$302.44
+22.0% upside to fair value
Med Conviction
Grade B+
VS
NIKE, Inc. · Consumer Cyclical
$42.62
+38.4% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
NKE has more upside to fair value
(+38.4%).
HD trades at a lower forward P/E
(20.5x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HD |
NKE |
| Current Price |
$302.44 |
$42.62 |
| Fair Value Estimate |
$369.00 |
$58.98 |
| Upside to Fair Value |
+22.0%
|
+38.4%
|
| Market Cap |
$301.2B |
$63.0B |
| Forward P/E |
20.5x
|
27.9x
|
| EV / EBITDA |
16.5x
|
20.7x
|
| Price / Sales |
2.0x
|
1.4x
|
| Price / FCF |
26.6x
|
19.4x
|
| Revenue Growth YoY |
+4.8%
|
-9.8%
|
| Gross Margin |
33.3%
|
42.7%
|
| Operating Margin |
12.7%
|
8.0%
|
| Return on Equity |
110.5%
|
24.4%
|
| Dividend Yield |
2.72% |
3.8% |
| FCF Yield |
3.75%
|
5.2%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and an expanding Pro contractor segment bolstered by the SRS Distribution acquisition. Q1 FY2026 results released May 19 beat both the top and bottom line, with revenue of $41.77B up 4.8% year over year and adjusted EPS of $3.43 versus the $3.41 consensus. Comp sales grew only 0.6% howe…
Nike is the world's largest athletic footwear and apparel company with $46.3B in FY2025 revenue, operating across 190+ countries with the Nike, Jordan, and Converse brands. The stock trades near its 9-year low at $42.62 after an 11% single-day crash following a Q3 FY2026 earnings report that showed 35% net income decline and weak Q4 guidance calling for a further 2-4% revenue decline. FY2025 reve…
Accumulation Zones
| Metric |
HD |
NKE |
| Zone Low |
$276.75 |
$44.23 |
| Zone High |
$313.65 |
$50.13 |
| In Buy Zone? |
Yes
|
Yes
|