HD vs WFC: Which Is the Better Buy?

Side-by-side comparison of The Home Depot, Inc. and Wells Fargo & Company โ€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-07-17.
The Home Depot, Inc. ยท Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A High Quality
VS
Wells Fargo & Company ยท Financial Services
$87.53
+18.1% upside to fair value
Med Conviction Grade B High Quality
QuantHub Verdict
HD has more upside to fair value (+34.6%). These are model outputs โ€” not personalized investment advice. See all research โ†’
Valuation & Fundamentals
Metric HD WFC
Current Price $343.30 $87.53
Fair Value Estimate $462.14 $103.38
Upside to Fair Value +34.6% +18.1%
Market Cap $342.3B $267.8B
Forward P/E 24.3x โ€”
EV / EBITDA 16.5x 15.8x
Price / Sales 2.0x 2.1x
Price / FCF 23.9x 226.4x
Revenue Growth YoY +4.8% +11.3%
Gross Margin 33.1% 64.5%
Operating Margin 12.4% 21.2%
Return on Equity 113.3% 12.6%
Dividend Yield 0% 2.06%
FCF Yield 4.18% 0.44%
Analyst Consensus Buy Hold
Investment Thesis
HD โ€” The Home Depot, Inc.
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 โ€ฆ
WFC โ€” Wells Fargo & Company
Wells Fargo is a diversified U.S. bank operating consumer and commercial banking, corporate and investment banking, and wealth management, supported by a large deposit franchise, a $2.3 trillion asset base, nationwide advisory distribution, and increasingly relevant capital-markets capabilities. Business quality is high but not without legacy constraints: return on equity is 12.6%, gross margin iโ€ฆ
Accumulation Zones
Metric HD WFC
Zone Low $346.61 $77.53
Zone High $392.82 $87.87
In Buy Zone? Yes Yes
โ† HD Research    WFC Research โ†’    All Research