HD vs WMT: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Walmart Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-13.
The Home Depot, Inc. · Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
VS
Walmart Inc. · Consumer Defensive
$117.18
-39.6% upside to fair value
Grade C
High Quality
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 |
WMT |
| Current Price |
$343.30 |
$117.18 |
| Fair Value Estimate |
$462.14 |
$70.81 |
| Upside to Fair Value |
+34.6%
|
-39.6%
|
| Market Cap |
$342.3B |
$932.5B |
| Forward P/E |
24.3x
|
41.1x
|
| EV / EBITDA |
16.5x
|
20.7x
|
| Price / Sales |
2.0x
|
1.3x
|
| Price / FCF |
23.9x
|
74.3x
|
| Revenue Growth YoY |
+4.8%
|
+7.3%
|
| Gross Margin |
33.1%
|
25.0%
|
| Operating Margin |
12.4%
|
4.2%
|
| Return on Equity |
113.3%
|
24.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.18%
|
1.35%
|
| Analyst Consensus |
Buy
|
Strong 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 …
Walmart Inc. operates as a leading discount retailer with a strong competitive moat built on scale, cost leadership, and advanced logistics and technology infrastructure. The company benefits from a diversified revenue base with Walmart U.S. contributing 69%, International 18%, and Sam's Club 13%. Despite solid revenue growth of 7.3% and earnings growth of 25.9% in the most recent quarter, the st…
Accumulation Zones
| Metric |
HD |
WMT |
| Zone Low |
$346.61 |
$53.11 |
| Zone High |
$392.82 |
$60.19 |
| In Buy Zone? |
Yes
|
No
|