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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

Lowe's

America's second-largest home improvement retailer targeting DIY consumers and homeowners.

DIY homeowners seeking value, budget-conscious consumers, growth investors

Score60%
VS
Home Depot

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

Score60%

Quick Answer

AI Summary

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.

Our Verdict

AI-assisted

Home 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.

Community feedback

Was this verdict helpful?

Lowe's
7.5/10
Home Depot
7.5/10

TIE — neck and neck

Lowe's

Choose Lowe's if

DIY homeowners seeking value, budget-conscious consumers, growth investors

Home Depot

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)
See all 8 differences

Key Facts & Figures

15 numeric metrics compared

MetricLowe'sHome DepotRatio
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 range35+ categories
Store Expansion (2026)(new stores)Renovation focus12 new stores
Annual Revenue(USD billions)$157 Billion$157 Billion
Number of US Stores2,300+2,300+
Employees(thousands)~465,000~465,000
Total Store Count(locations)2,3002,300
Average Store Size(square feet)105,000105,000
Product Markup(percent)8-12%8-12%
Average SKU Count per Store(items)35,00035,000
Same-Day Delivery Availability(% metro coverage)2,000+2,000+
Annual Employee Training Hours(hours)2020
Annual Revenue (2024)(USD billions)$151.2B$151.2B

Sourced from publicly available data ·

Key Differences

8 attributes compared head-to-head

Lowe's
3Lowe's
Evenly matched2 ties
Home Depot
3Home Depot
  • 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

Lowe's
Home Depot
FY2025 Total Sales(billion USD)
$86.3 billion
$120+ billion
Annual Revenue(USD billions)
$157 Billion
Annual Revenue (2024)(USD billions)
$151.2B
FY2026 Guidance Growth Rate(percent)
7-9%
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
Home Depot
Lowe's

Lowe's

+6-4

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

Home Depot

+6-4

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

  1. 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.

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