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
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 โฆ
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 iโฆ
Accumulation Zones
| Metric |
HD |
WFC |
| Zone Low |
$346.61 |
$77.53 |
| Zone High |
$392.82 |
$87.87 |
| In Buy Zone? |
Yes
|
Yes
|