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 2026-07-13.
The Home Depot, Inc. · Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
VS
RTX Corporation · Industrials
$185.60
-25.2% upside to fair value
Grade D
QuantHub Verdict
HD has more upside to fair value
(+34.6%).
HD trades at a lower forward P/E
(24.3x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HD |
RTX |
| Current Price |
$343.30 |
$185.60 |
| Fair Value Estimate |
$462.14 |
$138.81 |
| Upside to Fair Value |
+34.6%
|
-25.2%
|
| Market Cap |
$342.3B |
$249.9B |
| Forward P/E |
24.3x
|
34.3x
|
| EV / EBITDA |
16.5x
|
18.3x
|
| Price / Sales |
2.0x
|
2.8x
|
| Price / FCF |
23.9x
|
29.9x
|
| Revenue Growth YoY |
+4.8%
|
+8.7%
|
| Gross Margin |
33.1%
|
20.2%
|
| Operating Margin |
12.4%
|
10.9%
|
| Return on Equity |
113.3%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.18%
|
3.34%
|
| Analyst Consensus |
Buy
|
Buy
|
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 …
RTX Corporation is a leading aerospace and defense company with a strong competitive moat driven by scale and an installed base in commercial aerospace via Pratt & Whitney and Collins Aerospace, and defense through Raytheon. The company benefits from a large multi-year backlog of approximately $270 billion supporting steady cash flow and mid-single-digit organic growth. Despite solid revenue grow…
Accumulation Zones
| Metric |
HD |
RTX |
| Zone Low |
$346.61 |
$104.11 |
| Zone High |
$392.82 |
$117.99 |
| In Buy Zone? |
Yes
|
No
|