HD vs WFC: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Wells Fargo & Company — 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
Wells Fargo & Company · Financial Services
$86.12
+20.4% upside to fair value
Med Conviction
Grade B
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 |
WFC |
| Current Price |
$292.18 |
$86.12 |
| Fair Value Estimate |
$421.26 |
$103.68 |
| Upside to Fair Value |
+44.2%
|
+20.4%
|
| Market Cap |
$291.3B |
$260.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
14.7x
|
15.6x
|
| Price / Sales |
1.7x
|
2.0x
|
| Price / FCF |
19.2x
|
13.7x
|
| Revenue Growth YoY |
+5.7%
|
+11.3%
|
| Gross Margin |
33.2%
|
64.5%
|
| Operating Margin |
12.4%
|
21.2%
|
| Return on Equity |
102.7%
|
12.6%
|
| Dividend Yield |
3.18% |
2.15% |
| FCF Yield |
5.2%
|
7.3%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
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…
Wells Fargo is a diversified U.S. bank with roughly 197,000 employees operating four segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. The business quality is solid but not exceptional: trailing return on equity is 12.6%, TTM net margin is 17.5%, and revenue grew 11.3% year over year in the most recent quarter while…
Accumulation Zones
| Metric |
HD |
WFC |
| Zone Low |
$315.94 |
$77.76 |
| Zone High |
$358.07 |
$88.13 |
| In Buy Zone? |
Yes
|
Yes
|