The Home Depot, Inc. (HD) vs Target Corporation (TGT)
A side-by-side comparison of The Home Depot, Inc. and Target Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 28, 2026. Differences are shown without an overall score or investment verdict.
Different business models: HD is classified in Consumer Cyclical; TGT is classified in Consumer Defensive. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
HD
The Home Depot, Inc.
$344.47Consumer CyclicalDelayed quote: Jul 28, 2026, 4:00 PM EDT
TGT
Target Corporation
$144.18Consumer DefensiveDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — HD vs TGT
growth of $100 · dividends reinvested · last 30yHD +5054.3%TGT +3345.1%HD compounded faster
HD TGT
HD vs TGT: by the numbers
- •HD is the larger company ($343.48B vs $65.49B market cap).
- •TGT trades at the lower trailing earnings multiple (18.54 vs 23.87 P/E), one valuation lens rather than an overall verdict.
- •HD converts more revenue to profit (8.41% vs 3.24% net margin).
- •HD grew revenue faster over the past five years (3.34% vs -0.29% CAGR).
- •TGT pays the higher dividend yield (3.25% vs 2.76%).
Metrics side by side
Valuation
| Metric | HD | TGT |
|---|---|---|
| P/E ratio | 23.87 | 18.54 |
| Forward P/E | 23.19 | 19.22 |
| P/S ratio | 2.01 | 0.60 |
| P/B ratio | 24.13 | 3.90 |
| EV / EBITDA | 16.23 | 9.98 |
| FCF yield | 4.28% | 4.89% |
Profitability
| Metric | HD | TGT |
|---|---|---|
| Gross margin | 33.13% | 28.14% |
| Operating margin | 12.45% | 4.49% |
| Net margin | 8.41% | 3.24% |
| ROE | 100.99% | 21.04% |
| ROIC | 19.03% | 9.76% |
Dividends
| Metric | HD | TGT |
|---|---|---|
| Dividend yield | 2.76% | 3.25% |
| Payout ratio | 64.89% | 55.88% |
Growth (annualized)
| Metric | HD | TGT |
|---|---|---|
| Revenue CAGR (5Y) | 3.34% | -0.29% |
| EPS CAGR (5Y) | -2.18% | -1.34% |
| FCF CAGR (5Y) | -2.52% | -17.01% |
| Total return CAGR (5Y) | 3.08% | -8.75% |
Frequently asked
- Which has the lower trailing P/E, HD or TGT?
- TGT has the lower trailing P/E: HD trades at 23.87 and TGT at 18.54. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, HD or TGT?
- Over the past five years, HD grew revenue faster — HD at a 3.34% CAGR versus TGT at -0.29%.
- Does HD or TGT pay a bigger dividend?
- HD yields 2.76% and TGT yields 3.25% based on trailing dividends and the latest price.
- Is HD or TGT more profitable?
- HD runs the higher net margin — HD at 8.41% versus TGT at 3.24%.
- How have HD and TGT total returns compared?
- Over the past 10 years, HD delivered 12.13% and TGT delivered 9.69% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Home Depot P/E ratioTarget P/E ratioHome Depot dividend yieldTarget dividend yieldHome Depot ROETarget ROEHome Depot operating marginTarget operating marginHome Depot revenue growthTarget revenue growthHome Depot free cash flowTarget free cash flow
Home Depot & Target appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified July 28, 2026.