HD vs V: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Visa 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
Visa Inc. · Financial Services
$304.36
+37.7% upside to fair value
High Conviction
Grade A-
QuantHub Verdict
V has more upside to fair value
(+37.7%).
HD trades at a lower forward P/E
(23.0x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HD |
V |
| Current Price |
$337.34 |
$304.36 |
| Fair Value Estimate |
$378.00 |
$419.00 |
| Upside to Fair Value |
+12.1%
|
+37.7%
|
| Market Cap |
$336.0B |
$586.8B |
| Forward P/E |
23.0x
|
23.7x
|
| EV / EBITDA |
18.1x
|
22.3x
|
| Price / Sales |
2.3x
|
14.2x
|
| Price / FCF |
29.7x
|
25.6x
|
| Revenue Growth YoY |
+3.2%
|
+11.3%
|
| Gross Margin |
33.3%
|
81.08%
|
| Operating Margin |
12.7%
|
59.18%
|
| Return on Equity |
110.5%
|
54.22%
|
| Dividend Yield |
2.44% |
0.83% |
| FCF Yield |
3.37%
|
3.91%
|
| Analyst Consensus |
Buy
|
Strong 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 …
Visa is the world's dominant payment network with $40B in net revenue (FY2025), 50%+ net margins, and a capital-light toll-booth model processing $14.2T in annual payment volume across 257.5B transactions. The business compounds at 10-12% revenue CAGR with operating leverage pushing EPS growth to 12-15% over a cycle, funded by $21.6B in annual free cash flow against only $1.5B in capex. At 28.0x …
Accumulation Zones
| Metric |
HD |
V |
| Zone Low |
$285.00 |
$265.00 |
| Zone High |
$320.00 |
$300.00 |
| In Buy Zone? |
No
|
No
|