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 2026-04-22.
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
VS
Palo Alto Networks, Inc. · Technology
$174.96
+15.2% upside to fair value
Grade B
High Quality
QuantHub Verdict
PANW has more upside to fair value
(+15.2%).
HD trades at a lower forward P/E
(23.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
PANW |
| Current Price |
$337.34 |
$174.96 |
| Fair Value Estimate |
$378.00 |
$201.61 |
| Upside to Fair Value |
+12.1%
|
+15.2%
|
| Market Cap |
$336.0B |
$119.2B |
| Forward P/E |
23.0x
|
94.9x
|
| EV / EBITDA |
18.1x
|
52.4x
|
| Price / Sales |
2.3x
|
12.1x
|
| Price / FCF |
29.7x
|
29.3x
|
| Revenue Growth YoY |
+3.2%
|
+14.9%
|
| Gross Margin |
33.3%
|
73.5%
|
| Operating Margin |
12.7%
|
14.4%
|
| Return on Equity |
110.5%
|
15.5%
|
| Dividend Yield |
2.44% |
0% |
| FCF Yield |
3.37%
|
3.41%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and a rapidly growing Pro contractor segment bolstered by the SRS Distribution acquisition. The stock has declined 21% from its $427 high to $337, but now trades at 2.28x P/S, near the 5-year median of 2.31x, and 26.5x P/E which is above the 5-year median of 23.5x. EPS declined 4.6% in …
Palo Alto Networks is a leading cybersecurity company specializing in AI-driven cloud security platforms, subscription services, and hardware products. The company benefits from a durable competitive moat driven by its platform transformation under CEO Nikesh Arora, with over 50% of revenue from high-margin subscription services growing at 25.6% year-over-year in fiscal 2024. Despite a premium va…
Accumulation Zones
| Metric |
HD |
PANW |
| Zone Low |
$285.00 |
$151.21 |
| Zone High |
$320.00 |
$171.37 |
| In Buy Zone? |
No
|
No
|