HD vs PANW: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Palo Alto Networks, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-26.
The Home Depot, Inc. · Consumer Cyclical
$292.18
+44.2% upside to fair value
Med Conviction
Grade B
High Quality
VS
Palo Alto Networks, Inc. · Technology
$374.74
-5.2% upside to fair value
Med Conviction
Grade C
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 |
PANW |
| Current Price |
$292.18 |
$374.74 |
| Fair Value Estimate |
$421.26 |
$355.11 |
| Upside to Fair Value |
+44.2%
|
-5.2%
|
| Market Cap |
$291.3B |
$305.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
14.7x
|
569.8x
|
| Price / Sales |
1.7x
|
26.6x
|
| Price / FCF |
19.2x
|
64.0x
|
| Revenue Growth YoY |
+5.7%
|
+34.4%
|
| Gross Margin |
33.2%
|
70.4%
|
| Operating Margin |
12.4%
|
6.1%
|
| Return on Equity |
102.7%
|
1.7%
|
| Dividend Yield |
3.18% |
0% |
| FCF Yield |
5.2%
|
1.56%
|
| 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…
Palo Alto Networks is a global cybersecurity leader built around next-generation firewalls, the Panorama management platform, and a broad subscription portfolio spanning threat prevention, cloud security, secure access, and security analytics, sold to medium and large enterprises, service providers, and governments through direct and channel distribution. The business quality is genuinely high on…
Accumulation Zones
| Metric |
HD |
PANW |
| Zone Low |
$315.94 |
$266.33 |
| Zone High |
$358.07 |
$301.84 |
| In Buy Zone? |
Yes
|
No
|