HD vs XOM: Which Is the Better Buy?

Side-by-side comparison of The Home Depot, Inc. and Exxon Mobil Corporation β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-07-13.
The Home Depot, Inc. Β· Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A High Quality
VS
Exxon Mobil Corporation Β· Energy
$137.81
-45.0% upside to fair value
Grade C
QuantHub Verdict
HD has more upside to fair value (+34.6%). XOM trades at a lower forward P/E (22.8x). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric HD XOM
Current Price $343.30 $137.81
Fair Value Estimate $462.14 $75.80
Upside to Fair Value +34.6% -45.0%
Market Cap $342.3B $571.2B
Forward P/E 24.3x 22.8x
EV / EBITDA 16.5x 10.1x
Price / Sales 2.0x 1.8x
Price / FCF 23.9x 30.4x
Revenue Growth YoY +4.8% +2.6%
Gross Margin 33.1% 25.5%
Operating Margin 12.4% 9.0%
Return on Equity 113.3% 9.8%
Dividend Yield 0% 0%
FCF Yield 4.18% 3.29%
Analyst Consensus Buy Buy
Investment Thesis
HD β€” 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 …
XOM β€” Exxon Mobil Corporation
Exxon Mobil Corporation is a leading integrated oil and gas company with a durable competitive moat based on its scale, integration, advantaged long-life resources, proprietary technology, and irreplaceable infrastructure. The company is led by a long-tenured management team with a strong capital allocation track record focused on dividends and buybacks. Despite these strengths, Exxon is currentl…
Accumulation Zones
Metric HD XOM
Zone Low $346.61 $56.85
Zone High $392.82 $64.43
In Buy Zone? Yes No
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