Lowe's vs Target: Business Model & Financial Comparison 2026
Lowe's · Consumer Cyclical / Home Improvement Retail·Target · Consumer Defensive / Discount Stores
Financial Comparison
| Metric | LOWLowe's | TGTTarget |
|---|---|---|
| Market Cap | $133.28B | $53.14B |
| Revenue (TTM) | $86.29B | $104.78B |
| Revenue Growth | 10.9% | -1.5% |
| Gross Margin | 33.5% | 27.9% |
| Operating Margin | 8.3% | 4.9% |
| Net Margin | 7.7% | 3.5% |
| Return on Equity | N/A | 24.0% |
| P/E (Trailing) | 20.0x | 14.4x |
| P/E (Forward) | 17.4x | 13.8x |
| Free Cash Flow | $5.40B | $2.59B |
| Cash | $1.35B | $5.49B |
| Total Debt | $44.68B | $20.29B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
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 →Target
Target Corporation stands as a leading company in Consumer Defensive. Generating $104.78 billion in annual revenue (growing -1.5% year-over-year) and carrying a market capitalization of $54.69 billion, the company has cemented its position as a foundational player in the global Discount Stores landscape. Under the leadership of its leadership team, Target Corporation continues to execute on a multi-year strategic vision that balances growth inves…
Full Target analysis →SWOT Analysis Comparison
Strengths
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.
Target
- Target Corporation maintains a gross margin of 27.9% and operating margin of 4.8%, demonstrating consistent operational execution and cost discipline in a competitive market.
- A return on equity of 24.0% demonstrates that Target Corporation generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
- Target Corporation generated $2.49B in free cash flow, providing financial flexibility to invest in growth initiatives, return capital to shareholders, or strengthen the balance sheet.
Weaknesses
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
Target
- With a debt-to-equity ratio of 125.5, Target Corporation carries significant debt relative to equity. While manageable given its cash flow, elevated leverage limits financial flexibility and increases
- Year-over-year revenue declined 1.5%, raising questions about demand for Target Corporation's core offerings and requiring management to articulate a credible recovery path.
- A net profit margin of 3.5% leaves limited buffer against revenue fluctuations or cost increases. Any significant market downturn could quickly pressure profitability.
Opportunities
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.
Target
- Target Corporation 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 env
- 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 Target
- With $5.49B in cash and strong free cash flow generation, Target Corporation is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic reach.
Threats
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
Target
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Target Corporation's revenue is not fully insulated from macroeconomic cycles, and a recessi
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Target Corporation'
- 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 ToolLowe's vs Target: FAQ
- Is Lowe's bigger than Target?
- By market capitalization, Lowe's is larger at $133.28B vs Target's $53.14B.
- Which has better profit margins — Lowe's or Target?
- Lowe's has higher net profit margins (7.7%) compared to Target (3.5%). Gross and operating margins are compared in the table above.
- What sectors do Lowe's and Target operate in?
- Lowe's operates in the Consumer Cyclical sector (Home Improvement Retail). Target operates in the Consumer Defensive sector (Discount Stores).
- How does Lowe's's revenue compare to Target's?
- Lowe's generates $86.29B in annual revenue (TTM) while Target generates $104.78B. Target is the larger company by revenue as of 2026.