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 2026-04-11.
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
VS
Tesla, Inc. · Consumer Cyclical
$343.23
-5.3% upside to fair value
Low Conviction
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 |
TSLA |
| Current Price |
$337.34 |
$343.23 |
| Fair Value Estimate |
$378.00 |
$325.00 |
| Upside to Fair Value |
+12.1%
|
-5.3%
|
| Market Cap |
$336.0B |
$1,287.9B |
| Forward P/E |
23.0x
|
205.5x
|
| EV / EBITDA |
18.1x
|
108.8x
|
| Price / Sales |
2.3x
|
13.6x
|
| Price / FCF |
29.7x
|
207.1x
|
| Revenue Growth YoY |
+3.2%
|
-2.9%
|
| Gross Margin |
33.3%
|
18.0%
|
| Operating Margin |
12.7%
|
4.6%
|
| Return on Equity |
110.5%
|
4.8%
|
| Dividend Yield |
2.44% |
0% |
| FCF Yield |
3.37%
|
0.48%
|
| Analyst Consensus |
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 …
Tesla remains the most polarizing stock in markets. The core auto business is deteriorating: FY2025 revenue fell 2.9% to $94.8B, net income dropped 46.8% to $3.8B, and Q4 deliveries declined 15.6% YoY to 418K units. Yet the stock trades at 13.6x TTM P/S (near 5yr highs) on the optionality of Cybercab robotaxis launching April 2026, FSD reaching unsupervised status in Austin, and Optimus humanoid …
Accumulation Zones
| Metric |
HD |
TSLA |
| Zone Low |
$285.00 |
$244.00 |
| Zone High |
$320.00 |
$276.00 |
| In Buy Zone? |
No
|
No
|