HD vs RTX: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and RTX Corporation — 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
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
QuantHub Verdict
HD has more upside to fair value
(+12.1%).
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 |
RTX |
| Current Price |
$337.34 |
$172.90 |
| Fair Value Estimate |
$378.00 |
$136.05 |
| Upside to Fair Value |
+12.1%
|
-21.3%
|
| Market Cap |
$336.0B |
$232.8B |
| Forward P/E |
23.0x
|
32.1x
|
| EV / EBITDA |
18.1x
|
19.2x
|
| Price / Sales |
2.3x
|
2.6x
|
| Price / FCF |
29.7x
|
27.9x
|
| Revenue Growth YoY |
+3.2%
|
+8.7%
|
| Gross Margin |
33.3%
|
20.2%
|
| Operating Margin |
12.7%
|
10.4%
|
| Return on Equity |
110.5%
|
11.2%
|
| Dividend Yield |
2.44% |
0% |
| FCF Yield |
3.37%
|
3.59%
|
| 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 …
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Accumulation Zones
| Metric |
HD |
RTX |
| Zone Low |
$285.00 |
$102.04 |
| Zone High |
$320.00 |
$115.64 |
| In Buy Zone? |
No
|
No
|