HD vs. LOW
HD (The Home Depot, Inc.) and LOW (Lowe's Companies, Inc.) are both stocks. Both operate in the Home Improvement Retail industry within the Consumer Cyclical sector. Over the past 10 years, HD returned 12.80%/yr vs 13.03%/yr for LOW. A 0.59 correlation means they provide meaningful diversification when combined.
Performance
HD vs. LOW - Performance Comparison
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Returns By Period
In the year-to-date period, HD achieves a -1.47% return, which is significantly higher than LOW's -7.00% return. Both investments have delivered pretty close results over the past 10 years, with HD having a 12.80% annualized return and LOW not far ahead at 13.03%.
HD
- 1D
- 2.08%
- 1M
- 8.44%
- YTD
- -1.47%
- 6M
- -1.73%
- 1Y
- -1.11%
- 3Y*
- 6.29%
- 5Y*
- 4.58%
- 10Y*
- 12.80%
LOW
- 1D
- 2.27%
- 1M
- 0.52%
- YTD
- -7.00%
- 6M
- -6.73%
- 1Y
- 7.47%
- 3Y*
- 2.77%
- 5Y*
- 5.51%
- 10Y*
- 13.03%
HD vs. LOW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HD The Home Depot, Inc. | -1.47% | -9.33% | 15.00% | 12.77% | -21.98% | 59.51% | 24.50% | 30.56% | -7.30% | 44.61% |
LOW Lowe's Companies, Inc. | -7.00% | -0.33% | 13.01% | 14.03% | -21.49% | 63.34% | 36.40% | 32.23% | 1.22% | 33.29% |
Correlation
The correlation between HD and LOW is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.89 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.87 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.87 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.82 |
Correlation (All Time) Calculated using the full available price history since Jul 1, 1985 | 0.59 |
Over the past year, HD and LOW have become more correlated (0.89) than their long-term average of 0.59, meaning their price movements have been converging.
Fundamentals
HD:
$332.94B
LOW:
$124.43B
HD:
$14.08
LOW:
$11.86
HD:
23.74
LOW:
18.74
HD:
2.00
LOW:
1.41
HD:
$166.59B
LOW:
$88.43B
HD:
$55.19B
LOW:
$29.89B
HD:
$23.12B
LOW:
$11.50B
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Return for Risk
HD vs. LOW — Risk / Return Rank
HD
LOW
HD vs. LOW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for The Home Depot, Inc. (HD) and Lowe's Companies, Inc. (LOW). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| HD | LOW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.33 | ||
| Sortino ratioReturn per unit of downside risk | -0.51 | ||
| Omega ratioGain probability vs. loss probability | 1.01 | 1.07 | -0.06 |
| Calmar ratioReturn relative to maximum drawdown | -0.04 | 0.27 | -0.31 |
| Martin ratioReturn relative to average drawdown | -0.08 | 0.59 | -0.67 |
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Drawdowns
HD vs. LOW - Drawdown Comparison
The maximum HD drawdown since its inception was -70.46%, which is greater than LOW's maximum drawdown of -62.52%. Use the drawdown chart below to compare losses from any high point for HD and LOW.
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Drawdown Indicators
| HD | LOW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -70.46% | -62.52% | -7.94% |
Max Drawdown (1Y)Largest decline over 1 year | -28.81% | -27.75% | -1.06% |
Max Drawdown (3Y)Largest decline over 3 years | -28.84% | -27.75% | -1.09% |
Max Drawdown (5Y)Largest decline over 5 years | -34.73% | -33.86% | -0.87% |
Max Drawdown (10Y)Largest decline over 10 years | -37.99% | -48.63% | +10.64% |
Current DrawdownCurrent decline from peak | -19.44% | -22.31% | +2.87% |
Average DrawdownAverage peak-to-trough decline | -20.60% | -16.60% | -4.00% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.55% | 12.62% | +1.93% |
Volatility
HD vs. LOW - Volatility Comparison
The current volatility for The Home Depot, Inc. (HD) is 7.48%, while Lowe's Companies, Inc. (LOW) has a volatility of 8.69%. This indicates that HD experiences smaller price fluctuations and is considered to be less risky than LOW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HD | LOW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.48% | 8.69% | -1.21% |
Volatility (6M)Calculated over the trailing 6-month period | 18.31% | 20.77% | -2.46% |
Volatility (1Y)Calculated over the trailing 1-year period | 23.95% | 26.25% | -2.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 24.19% | 26.30% | -2.11% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.86% | 29.19% | -4.33% |
Dividends
HD vs. LOW - Dividend Comparison
HD's dividend yield for the trailing twelve months is around 2.77%, more than LOW's 2.16% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HD The Home Depot, Inc. | 2.77% | 2.67% | 2.31% | 2.41% | 2.41% | 1.59% | 2.26% | 2.49% | 2.40% | 1.88% | 2.06% | 1.78% |
LOW Lowe's Companies, Inc. | 2.16% | 1.95% | 1.82% | 1.93% | 1.86% | 1.08% | 1.40% | 1.72% | 1.93% | 1.64% | 1.77% | 1.34% |
Financials
HD vs. LOW - Financials Comparison
This section allows you to compare key financial metrics between The Home Depot, Inc. and Lowe's Companies, Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
HD vs. LOW - Profitability Comparison
HD - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, The Home Depot, Inc. reported a gross profit of 13.78B and revenue of 41.77B. Therefore, the gross margin over that period was 33.0%.
LOW - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Lowe's Companies, Inc. reported a gross profit of 7.54B and revenue of 23.08B. Therefore, the gross margin over that period was 32.7%.
HD - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, The Home Depot, Inc. reported an operating income of 4.98B and revenue of 41.77B, resulting in an operating margin of 11.9%.
LOW - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Lowe's Companies, Inc. reported an operating income of 2.55B and revenue of 23.08B, resulting in an operating margin of 11.1%.
HD - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, The Home Depot, Inc. reported a net income of 3.29B and revenue of 41.77B, resulting in a net margin of 7.9%.
LOW - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Lowe's Companies, Inc. reported a net income of 1.63B and revenue of 23.08B, resulting in a net margin of 7.1%.
Frequently Asked Questions
HD and LOW have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LOW has higher volatility (8.69%) compared to HD (7.48%). In terms of maximum drawdown, HD dropped -70.46% vs LOW's -62.52%.
LOW currently has the higher Sharpe Ratio (0.29 vs -0.05), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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