Home Depot vs Lowe's: Business Model & Financial Comparison 2026
Home Depot · Consumer Cyclical / Home Improvement Retail·Lowe's · Consumer Cyclical / Home Improvement Retail
Financial Comparison
| Metric | HDHome Depot | LOWLowe's |
|---|---|---|
| Market Cap | $337.51B | $133.28B |
| Revenue (TTM) | $164.68B | $86.29B |
| Revenue Growth | -3.8% | 10.9% |
| Gross Margin | 33.3% | 33.5% |
| Operating Margin | 10.1% | 8.3% |
| Net Margin | 8.6% | 7.7% |
| Return on Equity | 145.5% | N/A |
| P/E (Trailing) | 23.8x | 20.0x |
| P/E (Forward) | 20.8x | 17.4x |
| Free Cash Flow | $8.62B | $5.40B |
| Cash | $1.39B | $1.35B |
| Total Debt | $65.35B | $44.68B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
Home Depot
The Home Depot, Inc. stands as a leading company in Consumer Cyclical. Generating $164.68 billion in annual revenue (growing -3.8% year-over-year) and carrying a market capitalization of $360.06 billion, the company has cemented its position as a foundational player in the global Home Improvement Retail landscape. Under the leadership of its leadership team, The Home Depot, Inc. continues to execute on a multi-year strategic vision that balances …
Full Home Depot analysis →Lowe's
Lowe's stands as the second-largest home improvement retailer in the world, serving contractors and DIY customers. Generating $86.29 billion in annual revenue (growing 10.9% year-over-year) and carrying a market capitalization of $142.88 billion, the company has cemented its position as a foundational player in the global Home Improvement Retail landscape. Under the leadership of Marvin Ellison, Lowe's continues to execute on a multi-year strateg…
Full Lowe's analysis →SWOT Analysis Comparison
Strengths
Home Depot
- With a market capitalization of $360.06B, The Home Depot, Inc. is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access
- The Home Depot, Inc. maintains a gross margin of 33.3% and operating margin of 10.1%, demonstrating consistent operational execution and cost discipline in a competitive market.
- A return on equity of 145.5% demonstrates that The Home Depot, Inc. generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
Lowe's
- With a market capitalization of $142.88B, Lowe's is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller
- Lowe's maintains a gross margin of 33.5% and operating margin of 8.3%, demonstrating consistent operational execution and cost discipline in a competitive market.
- Revenue grew 10.9% year-over-year to $86.29B, indicating strong demand for Lowe's's products and services and outperformance relative to many industry peers.
Weaknesses
Home Depot
- With a debt-to-equity ratio of 510.0, The Home Depot, Inc. carries significant debt relative to equity. While manageable given its cash flow, elevated leverage limits financial flexibility and increas
- Year-over-year revenue declined 3.8%, raising questions about demand for The Home Depot, Inc.'s core offerings and requiring management to articulate a credible recovery path.
- With 470,000 employees globally, The Home Depot, Inc. faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, ni
Lowe's
- With 300,000 employees globally, Lowe's faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler competit
- Persistent market share gap vs Home Depot in professional contractor business — HD is the preferred Pro destination
- High housing turnover sensitivity: every 1M fewer home sales represents significant lost revenue
Opportunities
Home Depot
- The Home Depot, Inc. operates in the Home Improvement Retail segment of the broader Consumer Cyclical sector, which represents a $28 trillion global consumer spending market. Even modest share gains i
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for The Hom
- With $1.39B in cash and strong free cash flow generation, The Home Depot, Inc. is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic reach.
Lowe's
- Lowe's operates in the Home Improvement Retail segment of the broader Consumer Cyclical sector, which represents a $28 trillion global consumer spending market. Even modest share gains in this environ
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Lowe's'
- With $1.35B in cash and strong free cash flow generation, Lowe's is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic reach.
Threats
Home Depot
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. The Home Depot, Inc.'s revenue is not fully insulated from macroeconomic cycles, and a reces
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on The Home Depot, Inc
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
Lowe's
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Lowe's's revenue is not fully insulated from macroeconomic cycles, and a recession scenario
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Lowe's's business m
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
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Open Comparison ToolHome Depot vs Lowe's: FAQ
- Is Home Depot bigger than Lowe's?
- By market capitalization, Home Depot is larger at $337.51B vs Lowe's's $133.28B.
- Which has better profit margins — Home Depot or Lowe's?
- Home Depot has higher net profit margins (8.6%) compared to Lowe's (7.7%). Gross and operating margins are compared in the table above.
- What sectors do Home Depot and Lowe's operate in?
- Home Depot operates in the Consumer Cyclical sector (Home Improvement Retail). Lowe's operates in the Consumer Cyclical sector (Home Improvement Retail).
- How does Home Depot's revenue compare to Lowe's's?
- Home Depot generates $164.68B in annual revenue (TTM) while Lowe's generates $86.29B. Home Depot is the larger company by revenue as of 2026.