HD vs WDC: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Western Digital Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
The Home Depot, Inc. · Consumer Cyclical
$292.18
+44.2% upside to fair value
Med Conviction
Grade B
High Quality
VS
Western Digital Corporation · Technology
$441.36
-16.8% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
HD has more upside to fair value
(+44.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HD |
WDC |
| Current Price |
$292.18 |
$441.36 |
| Fair Value Estimate |
$421.26 |
$367.30 |
| Upside to Fair Value |
+44.2%
|
-16.8%
|
| Market Cap |
$291.3B |
$152.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
14.7x
|
17.4x
|
| Price / Sales |
1.7x
|
11.8x
|
| Price / FCF |
19.2x
|
47.3x
|
| Revenue Growth YoY |
+5.7%
|
+43.8%
|
| Gross Margin |
33.2%
|
48.9%
|
| Operating Margin |
12.4%
|
34.9%
|
| Return on Equity |
102.7%
|
118.6%
|
| Dividend Yield |
3.18% |
0.12% |
| FCF Yield |
5.2%
|
2.12%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
The Home Depot is the largest home-improvement retailer in the United States, operating a network of roughly 2,300 stores supported by about 472,400 full-time employees, and serving both do-it-yourself homeowners and professional contractors through stores, homedepot.com, and specialty sites such as blinds.com. The business quality is high: it generates a 102.7% return on equity, a 33.2% trailing…
Western Digital designs and manufactures hard disk drives and flash-based storage for data centers, client devices, and consumer markets, and it is currently enjoying an extraordinary demand surge tied to AI infrastructure buildouts. In the most recent quarter, revenue grew 43.8% year over year and earnings grew 1143.2% year over year, while trailing twelve-month gross margin reached 48.9%, opera…
Accumulation Zones
| Metric |
HD |
WDC |
| Zone Low |
$315.94 |
$275.48 |
| Zone High |
$358.07 |
$312.20 |
| In Buy Zone? |
Yes
|
No
|