Head-To-Head Comparison: Home Depot (NYSE:HD) vs. Haverty Furniture Companies (NYSE:HVT)

Home Depot (NYSE:HD) and Haverty Furniture Companies (NYSE:HVT) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Earnings and Valuation

This table compares Home Depot and Haverty Furniture Companies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home Depot	$159.51 billion	2.25	$14.81 billion	$14.74	24.46
Haverty Furniture Companies	$722.90 million	0.45	$19.96 million	$1.26	15.92

Home Depot has higher revenue and earnings than Haverty Furniture Companies. Haverty Furniture Companies is trading at a lower price-to-earnings ratio than Home Depot, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Home Depot and Haverty Furniture Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home Depot	0	7	21	1	2.79
Haverty Furniture Companies	0	1	0	0	2.00

Home Depot currently has a consensus target price of $426.77, suggesting a potential upside of 18.37%. Given Home Depot’s stronger consensus rating and higher possible upside, equities analysts plainly believe Home Depot is more favorable than Haverty Furniture Companies.

Insider & Institutional Ownership

70.9% of Home Depot shares are owned by institutional investors. Comparatively, 80.6% of Haverty Furniture Companies shares are owned by institutional investors. 0.1% of Home Depot shares are owned by insiders. Comparatively, 8.6% of Haverty Furniture Companies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Home Depot has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Haverty Furniture Companies has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Profitability

This table compares Home Depot and Haverty Furniture Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Home Depot	8.98%	242.51%	15.45%
Haverty Furniture Companies	2.96%	6.94%	3.29%

Dividends

Home Depot pays an annual dividend of $9.20 per share and has a dividend yield of 2.6%. Haverty Furniture Companies pays an annual dividend of $1.28 per share and has a dividend yield of 6.4%. Home Depot pays out 62.4% of its earnings in the form of a dividend. Haverty Furniture Companies pays out 101.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Home Depot has raised its dividend for 16 consecutive years and Haverty Furniture Companies has raised its dividend for 4 consecutive years.

Summary

Home Depot beats Haverty Furniture Companies on 14 of the 18 factors compared between the two stocks.

About Home Depot

The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, and building service contractors, as well as specialty tradesmen, such as electricians, plumbers, and painters. It sells its products through websites, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations (MRO) products and related services; and The Home Depot stores. The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.

About Haverty Furniture Companies

Haverty Furniture Companies, Inc. operates as a specialty retailer of residential furniture and accessories in the United States. The company offers furniture merchandise under the Havertys brand name. It also provides custom upholstery products and eclectic looks; and mattress product lines under the Tempur-Pedic, Serta, Sealy, and Stearns and Foster names. The company sells home furnishings through its retail stores, as well as through its website. Haverty Furniture Companies, Inc. was founded in 1885 and is headquartered in Atlanta, Georgia.