Head-To-Head Survey: Home Depot (HD) and Its Competitors

Home Depot (NYSE:HD) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it compare to its peers? We will compare Home Depot to related businesses based on the strength of its dividends, profitability, earnings, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Home Depot and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Home Depot	8.41%	106.42%	13.76%
Home Depot Competitors	-3.59%	-13.78%	3.24%

Dividends

Home Depot pays an annual dividend of $9.32 per share and has a dividend yield of 2.7%. Home Depot pays out 65.2% of its earnings in the form of a dividend. As a group, “Specialty Retail” companies pay a dividend yield of 2.0% and pay out 35.5% of their earnings in the form of a dividend. Home Depot has raised its dividend for 16 consecutive years.

Insider & Institutional Ownership

70.9% of Home Depot shares are owned by institutional investors. Comparatively, 51.9% of shares of all “Specialty Retail” companies are owned by institutional investors. 0.1% of Home Depot shares are owned by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Home Depot and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Home Depot	$164.68 billion	$14.16 billion	24.59
Home Depot Competitors	$7.21 billion	$386.51 million	31.08

Home Depot has higher revenue and earnings than its peers. Home Depot is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Home Depot has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Home Depot’s peers have a beta of 1.91, suggesting that their average stock price is 91% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Home Depot and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home Depot	1	13	18	1	2.58
Home Depot Competitors	3686	15618	21645	592	2.46

Home Depot currently has a consensus target price of $375.90, indicating a potential upside of 6.98%. As a group, “Specialty Retail” companies have a potential upside of 5.00%. Given Home Depot’s stronger consensus rating and higher possible upside, equities analysts plainly believe Home Depot is more favorable than its peers.

Summary

Home Depot beats its peers on 11 of the 15 factors compared.

Home Depot Company Profile

The Home Depot, Inc. is a home improvement retailer serving do-it-yourself customers, professional contractors and other businesses. The company sells building materials, tools, hardware, appliances, paint, flooring, and products for home maintenance, repair and renovation, as well as lawn and garden supplies. In addition to its retail stores and online channels, Home Depot offers services such as product delivery, equipment rental and home improvement installation. The company was founded in 1978 and is headquartered in Atlanta, Georgia.