HD vs PYPL: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and PayPal Holdings, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-13.
The Home Depot, Inc. · Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
VS
PayPal Holdings, Inc. · Financial Services
$42.51
+45.0% upside to fair value
Grade B
QuantHub Verdict
PYPL has more upside to fair value
(+45.0%).
PYPL trades at a lower forward P/E
(7.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
PYPL |
| Current Price |
$343.30 |
$42.51 |
| Fair Value Estimate |
$462.14 |
$61.64 |
| Upside to Fair Value |
+34.6%
|
+45.0%
|
| Market Cap |
$342.3B |
$37.5B |
| Forward P/E |
24.3x
|
7.7x
|
| EV / EBITDA |
16.5x
|
5.3x
|
| Price / Sales |
2.0x
|
1.1x
|
| Price / FCF |
23.9x
|
6.8x
|
| Revenue Growth YoY |
+4.8%
|
+7.2%
|
| Gross Margin |
33.1%
|
46.1%
|
| Operating Margin |
12.4%
|
17.9%
|
| Return on Equity |
113.3%
|
25.1%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.18%
|
14.71%
|
| Analyst Consensus |
Buy
|
Sell
|
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 …
PayPal Holdings, Inc. operates as a leading global digital payments platform with a competitive moat driven by its extensive network effects, brand recognition, and scale. Despite a durable business model with 2025 revenue of $33.17 billion growing at 4.3% year-over-year and a strong return on equity of 25.1%, the company faces slowing growth and margin pressures, reflected in a 13.5% decline in …
Accumulation Zones
| Metric |
HD |
PYPL |
| Zone Low |
$346.61 |
$46.23 |
| Zone High |
$392.82 |
$52.39 |
| In Buy Zone? |
Yes
|
Yes
|