Home Depot vs Lowes Overview
America’s two home improvement giants: Home Depot leads with focus on professional contractors, while Lowes targets DIY consumers with a cleaner store experience.
| Metric | Home Depot (HD) | Lowes (LOW) |
|---|---|---|
| Sector | Home Improvement Retail | Home Improvement Retail |
| Market Cap | $380B | $140B |
| Revenue | $159.5B | $83.0B |
| Net Income | $15.2B | $7.7B |
How Does Home Depot Make Money?
Home Depot (HD) operates in the Home Improvement Retail sector with a market cap of $380B. For a full breakdown of Home Depot’s revenue sources, see the Home Depot revenue breakdown.
Home Depot Revenue Breakdown
| Category | FY2024 (Jan) | FY2023 (Jan) | YoY Growth |
|---|---|---|---|
| Appliances | $20.7B | $21.3B | -2.8% |
| Building Materials | $20.1B | $20.6B | -2.4% |
| Décor | $27.9B | $28.4B | -1.8% |
| Hardlines | $46.8B | $47.5B | -1.5% |
| Other | $44.0B | $44.5B | -1.1% |
| Total Revenue | $159.5B | $157.4B | +1.3% |
How Does Lowes Make Money?
Lowes (LOW) operates in the Home Improvement Retail sector with a market cap of $140B. For a full breakdown of Lowes’ revenue sources, see the Lowes revenue breakdown.
Lowes Revenue Breakdown
| Category | FY2024 (Jan) | FY2023 (Jan) | YoY Growth |
|---|---|---|---|
| Home Décor | $20.8B | $21.5B | -3.3% |
| Hardlines | $24.9B | $25.4B | -2.0% |
| Building Products | $22.4B | $23.1B | -3.0% |
| Appliances & Other | $14.9B | $15.3B | -2.6% |
| Total Revenue | $83.0B | $86.4B | -3.9% |
Home Depot vs Lowes Profitability
Home Depot: Yes, Home Depot is highly profitable. The company reported net income of $15.2B on total revenue of $159.5B. With an operating margin of 13.8%, Home Depot demonstrates best-in-class retail profitability.
Lowes: Yes, Lowes is profitable. The company reported net income of $7.7B on total revenue of $83.0B. With an operating margin of 12.5%, Lowes has improved margins significantly through operational initiatives.
Key Financial Metrics Comparison
Home Depot Key Metrics
- Gross Margin: 33.5% — Industry-leading margin reflecting product mix and Pro focus.
- Operating Margin: 13.8% — Exceptional for a large retailer.
- Pro Sales: 50% — Half of revenue from professional contractors.
- Sales per Square Foot: $620 — Highest productivity in retail.
Lowes Key Metrics
- Gross Margin: 33.1% — Approaching Home Depot levels.
- Operating Margin: 12.5% — Improved from single digits under prior management.
- DIY Focus: 75% — More exposed to discretionary consumer spending.
- Store Count: 1,700+ — Smaller footprint than Home Depot.
Which Company is a Better Investment?
Home Depot offers superior scale, Pro customer mix, and profitability but trades at a premium. Lowes provides a turnaround story with margin expansion opportunity and lower valuation. Both benefit from aging housing stock and home equity gains. Review the full Home Depot revenue breakdown and Lowes revenue breakdown for detailed analysis.
Disclaimer: This comparison is for informational purposes only and does not constitute investment advice.