Home Depot vs Walmart: Business Model & Financial Comparison 2026
Home Depot · Consumer Cyclical / Home Improvement Retail·Walmart · Consumer Defensive / Discount Stores
Financial Comparison
| Metric | HDHome Depot | WMTWalmart |
|---|---|---|
| Market Cap | $337.51B | $1.01T |
| Revenue (TTM) | $164.68B | $713.16B |
| Revenue Growth | -3.8% | 5.6% |
| Gross Margin | 33.3% | 24.9% |
| Operating Margin | 10.1% | 4.6% |
| Net Margin | 8.6% | 3.1% |
| Return on Equity | 145.5% | 21.8% |
| P/E (Trailing) | 23.8x | 46.3x |
| P/E (Forward) | 20.8x | 38.5x |
| Free Cash Flow | $8.62B | $10.55B |
| Cash | $1.39B | $10.73B |
| Total Debt | $65.35B | $68.43B |
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 →Walmart
Walmart stands as the world's largest retailer by revenue. Generating $713.16 billion in annual revenue (growing 5.6% year-over-year) and carrying a market capitalization of $983.13 billion, the company has cemented its position as a foundational player in the global Discount Stores landscape. Under the leadership of Doug McMillon, Walmart continues to execute on a multi-year strategic vision that balances growth investment with shareholder retur…
Full Walmart 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.
Walmart
- With a market capitalization of $983.13B, Walmart is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller
- Walmart maintains a gross margin of 24.9% and operating margin of 4.6%, demonstrating consistent operational execution and cost discipline in a competitive market.
- A return on equity of 21.8% demonstrates that Walmart generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
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
Walmart
- Walmart's debt-to-equity ratio of 63.2 indicates meaningful financial leverage. Total debt stands at $67.09B against $10.73B in cash and equivalents.
- A net profit margin of 3.1% leaves limited buffer against revenue fluctuations or cost increases. Any significant market downturn could quickly pressure profitability.
- With 2,100,000 employees globally, Walmart faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler compe
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.
Walmart
- Walmart operates in the Discount Stores segment of the broader Consumer Defensive sector, which represents a $12 trillion global consumer staples market. Even modest share gains in this environment tr
- 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 Walmart
- With $10.73B in cash and strong free cash flow generation, Walmart 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
Walmart
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Walmart'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 Walmart's business
- 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 Walmart: FAQ
- Is Home Depot bigger than Walmart?
- By market capitalization, Walmart is larger at $1.01T vs Home Depot's $337.51B.
- Which has better profit margins — Home Depot or Walmart?
- Home Depot has higher net profit margins (8.6%) compared to Walmart (3.1%). Gross and operating margins are compared in the table above.
- What sectors do Home Depot and Walmart operate in?
- Home Depot operates in the Consumer Cyclical sector (Home Improvement Retail). Walmart operates in the Consumer Defensive sector (Discount Stores).
- How does Home Depot's revenue compare to Walmart's?
- Home Depot generates $164.68B in annual revenue (TTM) while Walmart generates $713.16B. Walmart is the larger company by revenue as of 2026.