HD vs LOW: Home Depot vs Lowe’s Stock Comparison
Home Depot (HD) and Lowe’s (LOW) dominate US home improvement. Home Depot is almost twice as large and leads with professional contractors; Lowe’s is more DIY-weighted and is catching up in Pro through acquisitions. Both face a frozen housing market, with existing-home turnover near historic lows.
HD vs LOW: 1-year performance
Our take
Leader vs. cheaper follower in a slow housing market. Home Depot grew sales 5.7% in its July quarter to $47.9B with comps +1.7%, helped by its SRS and GMS Pro distribution deals, and kept its full-year guidance. Lowe’s grew 8.3% to $26.0B, but almost all of that came from acquisitions (comps +0.2%), its margins fell and it trimmed its outlook. HD has the stronger operations at a higher multiple; LOW is cheaper, with more to prove on integrating FBM and ADG.
Prices and returns on this page update live; company figures are from company filings and announcements. Not investment advice.
HD strengths
Home Depot- Pro leadership. SRS and GMS (acquired Sep 2025) make Home Depot the largest supplier to professional builders and roofers; Pro outperformed DIY.
- Better execution. July quarter comps +1.7% (US +1.3%), online +11%; operating margin 14.3% vs 13.7% at Lowe’s; guidance reaffirmed.
- Income. $9.32 annual dividend ($2.33 a quarter).
LOW strengths
Lowe’s- Pro push via M&A. Foundation Building Materials (~$8.8B) and Artisan Design Group (~$1.3B) add Pro distribution and design-installation services.
- Cheaper valuation. Lower P/E than Home Depot (live figures above) with fifth straight quarter of positive comps.
- Dividend growth. Dividend raised to $1.25 a quarter ($5.00 a year), continuing decades of annual increases; buybacks resumed.
Key risks
- HD Housing turnover near historic lows; big-ticket discretionary projects remain weak.
- HD CEO Ted Decker on medical leave since Aug 2026; office of the CEO run jointly by two executives.
- HD Higher leverage after acquisitions (~$52.9B of debt) and buybacks paused since March 2024.
- LOW Organic growth near zero (comps +0.2%); acquisitions dilute margins (gross margin −77 bps).
- LOW Full-year 2026 outlook trimmed: sales ~$92B, comps flat, adjusted EPS ~$12.25.
- LOW Debt of ~$37.6B and $5.7B of intangibles from recent deals.
Total return
Split- and dividend-adjusted.
Quarterly revenue
Fiscal quarters FQ1 2025 – FQ2 2026 (fiscal years end late January/early February).
Revenue growth y/y
Reported sales growth vs the same fiscal quarter a year earlier.
HDLOW
HD vs LOW returns
Split- and dividend-adjustedTotal return includes reinvested dividends. The 5-year return is in the table only.
Risk (1 year)
| Metric | HD | LOW |
|---|---|---|
| Annualized volatility | – | – |
| Max drawdown | – | – |
| Below 52-week high | – | – |
| Correlation of daily returns | – | |
Quarterly revenue ($M)
| Symbol | FQ1 25 | FQ2 25 | FQ3 25 | FQ4 25 | FQ1 26 | FQ2 26 |
|---|---|---|---|---|---|---|
| HD | 39,856.0 | 45,277.0 | 41,352.0 | 38,198.0 | 41,765.0 | 47,861.0 |
| LOW | 20,930.0 | 23,959.0 | 20,813.0 | 20,585.0 | 23,078.0 | 25,956.0 |
HD vs LOW fundamentals
Fiscal Q2 2026 (quarter ended Aug 2, 2026 for HD; Jul 31, 2026 for LOW)| Metric | HD | LOW | Edge |
|---|---|---|---|
| Market cap (live) | – | – | – |
| P/E ratio (live, trailing) | – | – | – |
| Dividend yield (live, on current annual rate) | – | – | – |
| Net sales | $47.9B (+5.7%) | $26.0B (+8.3%) | HD |
| Comparable sales | +1.7% (US +1.3%) | +0.2% | HD |
| Online sales growth | +11% | +15.7% | LOW |
| Gross margin | 33.7% | 33.0% | HD |
| Operating margin | 14.3% (adj. 14.7%) | 13.7% | HD |
| Diluted EPS | $4.79 (adj. $4.92) | $4.27 (adj. $4.40) | – |
| FY2026 guidance | Sales +2.5–4.5%, comps flat to +2%, adj. EPS flat to +4% | Sales ~$92B, comps flat, adj. EPS ~$12.25 (trimmed) | HD |
| Total debt / cash | ~$52.9B / $2.1B | ~$37.6B / $3.2B | LOW |
| Annual dividend per share | $9.32 | $5.00 | – |
| Buybacks | Paused since Mar 2024 | $0.37B in first half | LOW |
Deals, contracts and corporate actions timeline
| Date | Co. | Counterparty | Deal | Value |
|---|---|---|---|---|
| Aug 19, 2026 | LOW | FQ2 results | Sales +8.3% (comps +0.2%), adjusted EPS $4.40; full-year outlook trimmed | – |
| Aug 18, 2026 | HD | FQ2 results | Sales $47.9B (+5.7%), comps +1.7%, adjusted EPS $4.92; guidance reaffirmed | – |
| Aug 12, 2026 | HD | Ted Decker | CEO begins temporary medical leave; Ann-Marie Campbell and Richard McPhail jointly lead the office of the CEO | – |
| Jun 2026 | HD | US government | IEEPA tariff refund received (~145 bps gross margin benefit, largely offset by cost inflation) | ~$730M |
| May 29, 2026 | LOW | Shareholders | Quarterly dividend raised to $1.25 from $1.20 | $5.00/yr |
| Feb 2026 | HD | Shareholders | Quarterly dividend raised 1.3% to $2.33 | $9.32/yr |
| Oct 9, 2025 | LOW | Foundation Building Materials | Acquisition completed: 370+ Pro building-materials locations | ~$8.8B |
| Sep 4, 2025 | HD | GMS Inc. (via SRS) | Acquisition completed at $110 a share in cash | ~$5.5B |
| Jun 2, 2025 | LOW | Artisan Design Group | Acquisition completed: design and installation for home builders | ~$1.3B |
HD vs LOW analysis
Racing for the Pro customer
Both companies see professional contractors as the steadier growth market while DIY spending is weak. Home Depot moved first with SRS (2024) and GMS (2025), building a distribution business for roofers, builders and drywall contractors. Lowe’s followed with FBM and ADG in 2025, which is why its reported sales grew faster than Home Depot’s while its comparable sales were nearly flat.
Housing is the headwind
Existing-home sales remain near multi-decade lows, and mortgage rates rose again in 2026. Both report weak big-ticket discretionary projects; a recovery in housing turnover would help both, with Lowe’s more exposed to DIY.
Margins and balance sheets
Home Depot runs higher margins and reaffirmed its guidance; Lowe’s margins fell as acquisitions diluted the mix. Both took on debt for their deals; Home Depot has paused buybacks to deleverage, while Lowe’s still repurchases modestly.
Valuation
Lowe’s trades at a lower P/E than Home Depot (live figures above). Home Depot’s premium reflects scale, execution and its head start in Pro.
What to watch
Fiscal Q3 results in November, housing turnover and mortgage rates, integration of acquisitions, Home Depot’s CEO return and tariff-related pricing.
HD vs LOW FAQ
Which is bigger, Home Depot or Lowe’s?
Home Depot. Its fiscal Q2 2026 sales were $47.9 billion versus $26.0 billion for Lowe’s.
Which is growing faster, HD or LOW?
Lowe’s reported faster sales growth (+8.3% vs +5.7%), but mostly from acquisitions. On comparable sales, Home Depot grew 1.7% and Lowe’s 0.2%.
Which pays a higher dividend, Home Depot or Lowe’s?
Home Depot pays $9.32 a year per share and Lowe’s $5.00. Yields depend on share prices; live figures are in the table above.
What acquisitions have Home Depot and Lowe’s made?
Home Depot bought SRS Distribution (2024) and GMS (2025, about $5.5 billion). Lowe’s bought Artisan Design Group (about $1.3 billion) and Foundation Building Materials (about $8.8 billion) in 2025.