HD vs PG: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and The Procter & Gamble Company — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
VS
The Procter & Gamble Company · Consumer Defensive
$143.45
+13.8% upside to fair value
Grade B
High Quality
QuantHub Verdict
PG has more upside to fair value
(+13.8%).
PG trades at a lower forward P/E
(20.8x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HD |
PG |
| Current Price |
$337.34 |
$143.45 |
| Fair Value Estimate |
$378.00 |
$163.27 |
| Upside to Fair Value |
+12.1%
|
+13.8%
|
| Market Cap |
$336.0B |
$334.0B |
| Forward P/E |
23.0x
|
20.8x
|
| EV / EBITDA |
18.1x
|
15.4x
|
| Price / Sales |
2.3x
|
3.9x
|
| Price / FCF |
29.7x
|
22.2x
|
| Revenue Growth YoY |
+3.2%
|
+7.4%
|
| Gross Margin |
33.3%
|
50.3%
|
| Operating Margin |
12.7%
|
23.2%
|
| Return on Equity |
110.5%
|
31.3%
|
| Dividend Yield |
2.44% |
0% |
| FCF Yield |
3.37%
|
4.5%
|
| 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 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 …
The Procter & Gamble Company is a leading consumer defensive firm specializing in household and personal products with a diversified portfolio across fabric and home care, baby and family care, beauty, health care, and grooming segments. The business quality is high, supported by durable brands, strong margins with a 50.3% gross margin and 19.2% net margin, and consistent earnings growth evidence…
Accumulation Zones
| Metric |
HD |
PG |
| Zone Low |
$285.00 |
$122.45 |
| Zone High |
$320.00 |
$138.78 |
| In Buy Zone? |
No
|
No
|