Lowe's vs Home Depot 2026: Growth vs Dominance
Both are America's largest home improvement retailers, but Lowe's offers more aggressive growth guidance (7-9% vs 2.5-4.5%) and trades at a valuation discount despite faster revenue growth. Home Depot focuses heavily on professional contractors, while Lowe's targets a broader consumer base with competitive pricing and expanding store presence.
Lowe's
America's second-largest home improvement retailer targeting DIY consumers and homeowners.
DIY homeowners seeking value, budget-conscious consumers, growth investors
Home Depot
America's largest home improvement mega-retailer with 2,300+ corporate-owned stores and vast inventory.
Professional contractors, roofers, remodelers, large commercial projects
Quick Answer
AI SummaryBoth are America's largest home improvement retailers, but Lowe's offers more aggressive growth guidance (7-9% vs 2.5-4.5%) and trades at a valuation discount despite faster revenue growth. Home Depot focuses heavily on professional contractors, while Lowe's targets a broader consumer base with competitive pricing and expanding store presence.
Our Verdict
AI-assistedHome Depot maintains its position as the larger retailer with superior professional contractor relationships and aggressive physical expansion. However, Lowe's presents stronger growth potential with more ambitious guidance, better valuation metrics, and proven earnings consistency, making it attractive for growth-focused investors while offering competitive value for DIY consumers.
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TIE — neck and neck
Choose Lowe's if
DIY homeowners seeking value, budget-conscious consumers, growth investors
Choose Home Depot if
Professional contractors, roofers, remodelers, large commercial projects
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Key Differences at a Glance
- FY2026 Sales Growth Guidance:✓ Lowe's wins(7-9% vs 2.5-4.5%)
- FY2025 Total Sales:✓ Home Depot wins($120+ billion (estimated) vs $86.3 billion)
- P/E Ratio Valuation:✓ Lowe's wins(Lower (15% discount) vs Higher premium)
Key Facts & Figures
15 numeric metrics compared
| Metric | Lowe's | Home Depot | Ratio |
|---|---|---|---|
| FY2025 Total Sales(billion USD) | $86.3 billion | $120+ billion | |
| FY2026 Guidance Growth Rate(percent) | 7-9% | 2.5-4.5% | |
| Stock Price (Feb 2026)(USD) | $275 (current) | Higher absolute | — |
| Online Product Categories(count) | Comprehensive range | 35+ categories | — |
| Store Expansion (2026)(new stores) | Renovation focus | 12 new stores | — |
| Annual Revenue(USD billions) | $157 Billion | $157 Billion | |
| Number of US Stores | 2,300+ | 2,300+ | |
| Employees(thousands) | ~465,000 | ~465,000 | |
| Total Store Count(locations) | 2,300 | 2,300 | |
| Average Store Size(square feet) | 105,000 | 105,000 | |
| Product Markup(percent) | 8-12% | 8-12% | |
| Average SKU Count per Store(items) | 35,000 | 35,000 | |
| Same-Day Delivery Availability(% metro coverage) | 2,000+ | 2,000+ | |
| Annual Employee Training Hours(hours) | 20 | 20 | |
| Annual Revenue (2024)(USD billions) | $151.2B | $151.2B |
Sourced from publicly available data ·
Key Differences
8 attributes compared head-to-head
- 7-9%(winner)FY2026 Sales Growth Guidance2.5-4.5%
- $86.3 billionFY2025 Total Sales$120+ billion (estimated)(winner)
- Lower (15% discount)(winner)P/E Ratio ValuationHigher premium
- DIY consumers & general retailPrimary Target MarketProfessional contractors & pros
- 18 of 20 quarters (4.1% avg)(winner)Earnings Beat RateConsistent performer
- Ongoing renovation focusStore Expansion (2026)12 new stores, 1.6M sq ft(winner)
- ImplementedAI Customer Service IntegrationImplemented
- Full range DIY focusProduct Categories Online35+ distinct categories(winner)
- FY2026 Sales Growth Guidance
Lowe's
7-9%(winner)
Home Depot
2.5-4.5%
- FY2025 Total Sales
Lowe's
$86.3 billion
Home Depot
$120+ billion (estimated)(winner)
- P/E Ratio Valuation
Lowe's
Lower (15% discount)(winner)
Home Depot
Higher premium
- Primary Target Market
Lowe's
DIY consumers & general retail
Home Depot
Professional contractors & pros
- Earnings Beat Rate
Lowe's
18 of 20 quarters (4.1% avg)(winner)
Home Depot
Consistent performer
- Store Expansion (2026)
Lowe's
Ongoing renovation focus
Home Depot
12 new stores, 1.6M sq ft(winner)
- AI Customer Service Integration
Lowe's
Implemented
Home Depot
Implemented
- Product Categories Online
Lowe's
Full range DIY focus
Home Depot
35+ distinct categories(winner)
Full Comparison
| Attribute | ||
|---|---|---|
| FY2025 Total Sales(billion USD) | $86.3 billion | $120+ billion(winner) |
| Annual Revenue(USD billions) | $157 Billion | — |
| Annual Revenue (2024)(USD billions) | $151.2B | — |
| FY2026 Guidance Growth Rate(percent) | 7-9%(winner) | 2.5-4.5% |
| P/E Ratio Position(relative valuation) | 15% discount | Premium |
| Stock Price (Feb 2026)(USD) | $275 (current) | Higher absolute |
| Earnings Beat Rate(quarters) | 18 of 20 (4.1% avg) | Strong consistency |
| Online Product Categories(count) | Comprehensive range | 35+ categories |
| Store Expansion (2026)(new stores) | Renovation focus | 12 new stores |
| AI Customer Service(implementation status) | Implemented | Implemented |
| Number of US Stores | 2,300+ | — |
| Total Store Count(locations) | 2,300 | — |
| Employees(thousands) | ~465,000 | — |
| Average Store Size(square feet) | 105,000 | — |
| Product Markup(percent) | 8-12% | — |
| Average SKU Count per Store(items) | 35,000 | — |
| Same-Day Delivery Availability(% metro coverage) | 2,000+ | — |
| Annual Employee Training Hours(hours) | 20 | — |
| Store Ownership Model | 100% Corporate-owned | — |
Pros & Cons
12 pros·8 cons across both
Lowe's
Pros
- Higher FY2026 growth guidance (7-9%)
- Trades at 15% P/E discount vs Home Depot
- Strong earnings consistency (18/20 quarters beat)
- Better revenue growth (3.2% vs 2.8%)
- Competitive pricing for consumer projects
- Expanding store footprint with renovations
Cons
- Smaller overall sales base
- Less focus on professional contractors
- Lower brand recognition among pros
- Limited wholesale presence
Home Depot
Pros
- Largest market presence ($120B+ sales)
- Strategic focus on 'Complex Pro' contractors
- 35+ distinct product categories online
- Aggressive expansion (12 new stores in 2026)
- Superior wholesale/contractor relationships
- Extensive in-store inventory selection
Cons
- More conservative growth guidance (2.5-4.5%)
- Higher P/E valuation
- Slower revenue growth than Lowe's
- Primarily pro-focused (less DIY friendly)
Frequently Asked Questions
5 questions
Lowe's generally offers competitive pricing for DIY consumers and homeowners, while Home Depot's focus on contractors means pricing varies by customer segment. For bulk/professional purchases, Home Depot may offer better contractor rates. For typical consumer projects, prices are comparable with frequent promotions at both retailers.
Resources & Learn More
Curated sources to dive deeper
Where to Buy
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