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 2026-08-06.
The Home Depot, Inc. · Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
VS
Western Digital Corporation · Technology
$519.17
-28.7% upside to fair value
Med Conviction
Grade C+
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 |
WDC |
| Current Price |
$343.30 |
$519.17 |
| Fair Value Estimate |
$462.14 |
$370.00 |
| Upside to Fair Value |
+34.6%
|
-28.7%
|
| Market Cap |
$342.3B |
$178.9B |
| Forward P/E |
24.3x
|
27.8x
|
| EV / EBITDA |
16.5x
|
37.3x
|
| Price / Sales |
2.0x
|
13.9x
|
| Price / FCF |
23.9x
|
51.0x
|
| Revenue Growth YoY |
+4.8%
|
+35.7%
|
| Gross Margin |
33.1%
|
48.9%
|
| Operating Margin |
12.4%
|
34.9%
|
| Return on Equity |
113.3%
|
43.4%
|
| Dividend Yield |
0% |
0.1% |
| FCF Yield |
4.18%
|
2.0%
|
| 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 …
Western Digital is now a pure-play, duopoly hard-disk-drive manufacturer, having spun off its NAND flash business as SanDisk in February 2025 and sold its remaining SanDisk stake for $3.1 billion in February 2026. It is riding the same AI-storage supercycle as SanDisk and Micron, but from the mass-capacity nearline HDD side: hyperscalers are buying every high-capacity drive WDC can make for AI da…
Accumulation Zones
| Metric |
HD |
WDC |
| Zone Low |
$346.61 |
$278.00 |
| Zone High |
$392.82 |
$315.00 |
| In Buy Zone? |
Yes
|
No
|