HD vs XOM: Which Is the Better Buy?

Side-by-side comparison of The Home Depot, Inc. and Exxon Mobil Corporation — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-05-20.
The Home Depot, Inc. · Consumer Cyclical
$302.44
+22.0% upside to fair value
Med Conviction Grade B+
VS
Exxon Mobil Corporation · Energy
$154.46
-40.5% upside to fair value
Grade C
QuantHub Verdict
HD has more upside to fair value (+22.0%). HD trades at a lower forward P/E (20.5x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric HD XOM
Current Price $302.44 $154.46
Fair Value Estimate $369.00 $91.87
Upside to Fair Value +22.0% -40.5%
Market Cap $301.2B $642.0B
Forward P/E 20.5x 23.2x
EV / EBITDA 16.5x 10.3x
Price / Sales 2.0x 2.0x
Price / FCF 26.6x 27.2x
Revenue Growth YoY +4.8% -1.3%
Gross Margin 33.3% 21.7%
Operating Margin 12.7% 10.5%
Return on Equity 110.5% 11.0%
Dividend Yield 2.72% 0%
FCF Yield 3.75% 3.68%
Analyst Consensus Buy Buy
Investment Thesis
HD — The Home Depot, Inc.
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and an expanding Pro contractor segment bolstered by the SRS Distribution acquisition. Q1 FY2026 results released May 19 beat both the top and bottom line, with revenue of $41.77B up 4.8% year over year and adjusted EPS of $3.43 versus the $3.41 consensus. Comp sales grew only 0.6% howe…
XOM — Exxon Mobil Corporation
Exxon Mobil Corporation operates as a global integrated oil and gas company with significant operations in upstream, energy products, chemical products, and specialty products segments. The company benefits from a highly experienced management team with decades of internal tenure, led by CEO Darren Woods. Despite strong cash flow generation and operational scale, Exxon is currently overvalued, tr…
Accumulation Zones
Metric HD XOM
Zone Low $276.75 $68.90
Zone High $313.65 $78.09
In Buy Zone? Yes No
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