HD vs NOW: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and ServiceNow, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-18.
The Home Depot, Inc. · Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
VS
ServiceNow, Inc. · Technology
$103.24
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
NOW has more upside to fair value
(+45.0%).
HD trades at a lower forward P/E
(24.3x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HD |
NOW |
| Current Price |
$343.30 |
$103.24 |
| Fair Value Estimate |
$462.14 |
$149.70 |
| Upside to Fair Value |
+34.6%
|
+45.0%
|
| Market Cap |
$342.3B |
$106.5B |
| Forward P/E |
24.3x
|
61.1x
|
| EV / EBITDA |
16.5x
|
32.9x
|
| Price / Sales |
2.0x
|
7.6x
|
| Price / FCF |
23.9x
|
23.0x
|
| Revenue Growth YoY |
+4.8%
|
+22.1%
|
| Gross Margin |
33.1%
|
76.6%
|
| Operating Margin |
12.4%
|
13.4%
|
| Return on Equity |
113.3%
|
15.0%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.18%
|
4.35%
|
| 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 …
ServiceNow, Inc. operates in the technology sector specializing in software applications, delivering high-quality enterprise cloud solutions with a durable competitive moat evidenced by a 15% return on equity and strong gross margins of 76.6%. The company is currently in an investing growth phase with 22.1% revenue growth in the most recent quarter, although earnings growth is modest at 2.0%. Des…
Accumulation Zones
| Metric |
HD |
NOW |
| Zone Low |
$346.61 |
$112.27 |
| Zone High |
$392.82 |
$127.24 |
| In Buy Zone? |
Yes
|
Yes
|