HD vs TSLA: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Tesla, 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
Tesla, Inc. · Consumer Cyclical
$400.49
-1.1% 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.
See all research →
Valuation & Fundamentals
| Metric |
HD |
TSLA |
| Current Price |
$343.30 |
$400.49 |
| Fair Value Estimate |
$462.14 |
$396.15 |
| Upside to Fair Value |
+34.6%
|
-1.1%
|
| Market Cap |
$342.3B |
$1,504.1B |
| Forward P/E |
24.3x
|
334.1x
|
| EV / EBITDA |
16.5x
|
124.0x
|
| Price / Sales |
2.0x
|
15.4x
|
| Price / FCF |
23.9x
|
214.9x
|
| Revenue Growth YoY |
+4.8%
|
+15.8%
|
| Gross Margin |
33.1%
|
19.1%
|
| Operating Margin |
12.4%
|
5.0%
|
| Return on Equity |
113.3%
|
4.8%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.18%
|
0.47%
|
| 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 …
Tesla, Inc. is a leading global electric vehicle manufacturer and energy solutions provider, led by CEO Elon Musk since 2008. The company maintains a strong position in the EV market with a unique fast-charging and software ecosystem, although its EV market share is declining amid intensifying competition. Tesla's business quality is medium due to its narrowing moat and modest profitability, with…
Accumulation Zones
| Metric |
HD |
TSLA |
| Zone Low |
$346.61 |
$297.11 |
| Zone High |
$392.82 |
$336.73 |
| In Buy Zone? |
Yes
|
No
|