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 2026-09-25.
The Home Depot, Inc. · Consumer Cyclical
$292.18
+44.2% upside to fair value
Med Conviction Grade B High Quality
VS
ServiceNow, Inc. · Technology
$139.82
+16.2% upside to fair value
Med Conviction Grade A- High Quality
QuantHub Verdict
HD has more upside to fair value (+44.2%). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric HD NOW
Current Price $292.18 $139.82
Fair Value Estimate $421.26 $162.50
Upside to Fair Value +44.2% +16.2%
Market Cap $291.3B $144.6B
Forward P/E — —
EV / EBITDA 14.7x 43.1x
Price / Sales 1.7x 9.8x
Price / FCF 19.2x 31.5x
Revenue Growth YoY +5.7% +24.0%
Gross Margin 33.2% 74.8%
Operating Margin 12.4% 11.4%
Return on Equity 102.7% 13.8%
Dividend Yield 3.18% 0%
FCF Yield 5.2% 3.17%
Analyst Consensus Strong Buy Strong Buy
Investment Thesis
HD — The Home Depot, Inc.
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…
NOW — ServiceNow, Inc.
ServiceNow provides a cloud-based enterprise workflow platform spanning IT service management, operations, employee workflows, CRM, AI orchestration and security. Business quality is high because its common data model, deeply embedded workflows and cross-department deployments create meaningful switching costs, while roughly 90% of the Fortune 500 use the platform and more than 85 billion workflo…
Accumulation Zones
Metric HD NOW
Zone Low $315.94 $121.88
Zone High $358.07 $138.12
In Buy Zone? Yes No
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