HD vs SBUX: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Starbucks Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
The Home Depot, Inc. · Consumer Cyclical
$302.44
+22.0% upside to fair value
Med Conviction
Grade B+
VS
Starbucks Corporation · Consumer Cyclical
$96.60
-12.3% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
HD has more upside to fair value
(+22.0%).
HD trades at a lower forward P/E
(20.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
SBUX |
| Current Price |
$302.44 |
$96.60 |
| Fair Value Estimate |
$369.00 |
$84.75 |
| Upside to Fair Value |
+22.0%
|
-12.3%
|
| Market Cap |
$301.2B |
$110.1B |
| Forward P/E |
20.5x
|
42.2x
|
| EV / EBITDA |
16.5x
|
22.5x
|
| Price / Sales |
2.0x
|
3.0x
|
| Price / FCF |
26.6x
|
45.1x
|
| Revenue Growth YoY |
+4.8%
|
+2.8%
|
| Gross Margin |
33.3%
|
24.2%
|
| Operating Margin |
12.7%
|
9.6%
|
| Return on Equity |
110.5%
|
-22.9%
|
| Dividend Yield |
2.72% |
2.55% |
| FCF Yield |
3.75%
|
2.2%
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and an expanding Pro contractor segment bolstered by the SRS Distribution acquisition. Q1 FY2026 results released May 19 beat both the top and bottom line, with revenue of $41.77B up 4.8% year over year and adjusted EPS of $3.43 versus the $3.41 consensus. Comp sales grew only 0.6% howe…
Starbucks is the world's largest specialty coffee retailer with over 39,000 stores across 86 markets, generating $37.2B in annual revenue. Under CEO Brian Niccol, now 19 months into his tenure after joining from Chipotle in September 2024, the company is executing the Back to Starbucks operational turnaround focused on service speed, menu simplification, and store experience reinvention. At P/S 2…
Accumulation Zones
| Metric |
HD |
SBUX |
| Zone Low |
$276.75 |
$63.56 |
| Zone High |
$313.65 |
$72.04 |
| In Buy Zone? |
Yes
|
No
|