Home Depot vs NIKE: Business Model & Financial Comparison 2026
Home Depot · Consumer Cyclical / Home Improvement Retail·NIKE · Consumer Cyclical / Footwear & Accessories
Financial Comparison
| Metric | HDHome Depot | NKENIKE |
|---|---|---|
| Market Cap | $337.51B | $79.91B |
| Revenue (TTM) | $164.68B | $46.51B |
| Revenue Growth | -3.8% | 0.6% |
| Gross Margin | 33.3% | 41.1% |
| Operating Margin | 10.1% | 8.1% |
| Net Margin | 8.6% | 5.4% |
| Return on Equity | 145.5% | 18.0% |
| P/E (Trailing) | 23.8x | 31.6x |
| P/E (Forward) | 20.8x | 23.5x |
| Free Cash Flow | $8.62B | $2.58B |
| Cash | $1.39B | $8.34B |
| Total Debt | $65.35B | $11.28B |
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 →NIKE
NIKE, Inc. stands as a leading company in Consumer Cyclical. Generating $46.51 billion in annual revenue (growing 0.6% year-over-year) and carrying a market capitalization of $85.89 billion, the company has cemented its position as a foundational player in the global Footwear & Accessories landscape. Under the leadership of its leadership team, NIKE, Inc. continues to execute on a multi-year strategic vision that balances growth investment with s…
Full NIKE 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.
NIKE
- NIKE, Inc.'s gross margin of 41.1% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 8.1% demonstrates disciplined
- A return on equity of 18.0% demonstrates that NIKE, Inc. generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
- NIKE, Inc. generated $2.58B in free cash flow, providing financial flexibility to invest in growth initiatives, return capital to shareholders, or strengthen the balance sheet.
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
NIKE
- NIKE, Inc.'s debt-to-equity ratio of 80.1 indicates meaningful financial leverage. Total debt stands at $11.28B against $8.34B in cash and equivalents.
- Revenue growth of 0.6% is below what growth investors typically seek, suggesting market saturation in core businesses or increasing competitive pressure.
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.
NIKE
- NIKE, Inc. operates in the Footwear & Accessories segment of the broader Consumer Cyclical sector, which represents a $28 trillion global consumer spending market. Even modest share gains in this envi
- 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 NIKE, I
- With $8.34B in cash and strong free cash flow generation, NIKE, Inc. 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
NIKE
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. NIKE, Inc.'s revenue is not fully insulated from macroeconomic cycles, and a recession scena
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on NIKE, Inc.'s busine
- 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 NIKE: FAQ
- Is Home Depot bigger than NIKE?
- By market capitalization, Home Depot is larger at $337.51B vs NIKE's $79.91B.
- Which has better profit margins — Home Depot or NIKE?
- Home Depot has higher net profit margins (8.6%) compared to NIKE (5.4%). Gross and operating margins are compared in the table above.
- What sectors do Home Depot and NIKE operate in?
- Home Depot operates in the Consumer Cyclical sector (Home Improvement Retail). NIKE operates in the Consumer Cyclical sector (Footwear & Accessories).
- How does Home Depot's revenue compare to NIKE's?
- Home Depot generates $164.68B in annual revenue (TTM) while NIKE generates $46.51B. Home Depot is the larger company by revenue as of 2026.