Lowe's vs Walmart: Business Model & Financial Comparison 2026
Lowe's · Consumer Cyclical / Home Improvement Retail·Walmart · Consumer Defensive / Discount Stores
Financial Comparison
| Metric | LOWLowe's | WMTWalmart |
|---|---|---|
| Market Cap | $133.28B | $1.01T |
| Revenue (TTM) | $86.29B | $713.16B |
| Revenue Growth | 10.9% | 5.6% |
| Gross Margin | 33.5% | 24.9% |
| Operating Margin | 8.3% | 4.6% |
| Net Margin | 7.7% | 3.1% |
| Return on Equity | N/A | 21.8% |
| P/E (Trailing) | 20.0x | 46.3x |
| P/E (Forward) | 17.4x | 38.5x |
| Free Cash Flow | $5.40B | $10.55B |
| Cash | $1.35B | $10.73B |
| Total Debt | $44.68B | $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
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 →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
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.
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
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
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
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.
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
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
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 ToolLowe's vs Walmart: FAQ
- Is Lowe's bigger than Walmart?
- By market capitalization, Walmart is larger at $1.01T vs Lowe's's $133.28B.
- Which has better profit margins — Lowe's or Walmart?
- Lowe's has higher net profit margins (7.7%) compared to Walmart (3.1%). Gross and operating margins are compared in the table above.
- What sectors do Lowe's and Walmart operate in?
- Lowe's operates in the Consumer Cyclical sector (Home Improvement Retail). Walmart operates in the Consumer Defensive sector (Discount Stores).
- How does Lowe's's revenue compare to Walmart's?
- Lowe's generates $86.29B in annual revenue (TTM) while Walmart generates $713.16B. Walmart is the larger company by revenue as of 2026.