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BAC vs. HD: A Head-to-Head Stock Comparison

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Here’s a clear look at BAC and HD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolBACHD
Company NameBank of America CorporationThe Home Depot, Inc.
CountryUnited StatesUnited States
GICS SectorFinancialsConsumer Discretionary
GICS IndustryBanksSpecialty Retail
Market Capitalization358.13 billion USD399.70 billion USD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973September 22, 1981
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of BAC and HD by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

BAC vs. HD: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolBACHD
5-Day Price Return1.34%0.35%
13-Week Price Return8.00%5.89%
26-Week Price Return4.36%-2.59%
52-Week Price Return21.88%10.65%
Month-to-Date Return2.28%9.31%
Year-to-Date Return10.01%3.28%
10-Day Avg. Volume32.33M3.91M
3-Month Avg. Volume39.90M3.39M
3-Month Volatility19.69%19.91%
Beta1.361.01

Profitability

Return on Equity (TTM)

BAC

9.46%

Banks Industry

Max
26.37%
Q3
15.92%
Median
12.25%
Q1
8.69%
Min
0.15%

BAC’s Return on Equity of 9.46% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

HD

188.48%

Specialty Retail Industry

Max
61.19%
Q3
37.24%
Median
18.81%
Q1
8.92%
Min
-13.03%

HD’s Return on Equity of 188.48% is exceptionally high, placing it well beyond the typical range for the Specialty Retail industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

BAC vs. HD: A comparison of their Return on Equity (TTM) against their respective Banks and Specialty Retail industry benchmarks.

Net Profit Margin (TTM)

BAC

30.16%

Banks Industry

Max
54.20%
Q3
35.70%
Median
28.97%
Q1
22.53%
Min
6.98%

BAC’s Net Profit Margin of 30.16% is aligned with the median group of its peers in the Banks industry. This indicates its ability to convert revenue into profit is typical for the sector.

HD

8.86%

Specialty Retail Industry

Max
21.28%
Q3
10.68%
Median
6.08%
Q1
2.43%
Min
-4.54%

HD’s Net Profit Margin of 8.86% is aligned with the median group of its peers in the Specialty Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.

BAC vs. HD: A comparison of their Net Profit Margin (TTM) against their respective Banks and Specialty Retail industry benchmarks.

Operating Profit Margin (TTM)

BAC

32.74%

Banks Industry

Max
63.35%
Q3
44.59%
Median
37.24%
Q1
28.25%
Min
13.37%

BAC’s Operating Profit Margin of 32.74% is around the midpoint for the Banks industry, indicating that its efficiency in managing core business operations is typical for the sector.

HD

13.09%

Specialty Retail Industry

Max
33.35%
Q3
15.84%
Median
9.34%
Q1
3.83%
Min
-8.97%

HD’s Operating Profit Margin of 13.09% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

BAC vs. HD: A comparison of their Operating Profit Margin (TTM) against their respective Banks and Specialty Retail industry benchmarks.

Profitability at a Glance

SymbolBACHD
Return on Equity (TTM)9.46%188.48%
Return on Assets (TTM)0.84%14.91%
Net Profit Margin (TTM)30.16%8.86%
Operating Profit Margin (TTM)32.74%13.09%
Gross Profit Margin (TTM)--33.35%

Financial Strength

Current Ratio (MRQ)

BAC

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

For the Banks industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

HD

1.15

Specialty Retail Industry

Max
2.83
Q3
1.89
Median
1.39
Q1
1.11
Min
0.64

HD’s Current Ratio of 1.15 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.

BAC vs. HD: A comparison of their Current Ratio (MRQ) against their respective Banks and Specialty Retail industry benchmarks.

Debt-to-Equity Ratio (MRQ)

BAC

2.54

Banks Industry

Max
4.75
Q3
2.62
Median
1.02
Q1
0.39
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.

HD

4.91

Specialty Retail Industry

Max
3.02
Q3
1.57
Median
0.64
Q1
0.20
Min
0.00

With a Debt-to-Equity Ratio of 4.91, HD operates with exceptionally high leverage compared to the Specialty Retail industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

BAC vs. HD: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Banks and Specialty Retail industry benchmarks.

Interest Coverage Ratio (TTM)

BAC

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks industry.

HD

10.15

Specialty Retail Industry

Max
48.12
Q3
35.95
Median
14.13
Q1
3.61
Min
-36.00

HD’s Interest Coverage Ratio of 10.15 is positioned comfortably within the norm for the Specialty Retail industry, indicating a standard and healthy capacity to cover its interest payments.

BAC vs. HD: A comparison of their Interest Coverage Ratio (TTM) against their respective Banks and Specialty Retail industry benchmarks.

Financial Strength at a Glance

SymbolBACHD
Current Ratio (MRQ)--1.15
Quick Ratio (MRQ)--0.34
Debt-to-Equity Ratio (MRQ)2.544.91
Interest Coverage Ratio (TTM)--10.15

Growth

Revenue Growth

BAC vs. HD: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

BAC vs. HD: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

BAC

2.66%

Banks Industry

Max
10.27%
Q3
5.83%
Median
3.81%
Q1
2.50%
Min
0.00%

BAC’s Dividend Yield of 2.66% is consistent with its peers in the Banks industry, providing a dividend return that is standard for its sector.

HD

2.23%

Specialty Retail Industry

Max
6.53%
Q3
2.69%
Median
1.08%
Q1
0.00%
Min
0.00%

HD’s Dividend Yield of 2.23% is consistent with its peers in the Specialty Retail industry, providing a dividend return that is standard for its sector.

BAC vs. HD: A comparison of their Dividend Yield (TTM) against their respective Banks and Specialty Retail industry benchmarks.

Dividend Payout Ratio (TTM)

BAC

33.91%

Banks Industry

Max
147.07%
Q3
80.55%
Median
54.40%
Q1
35.71%
Min
0.00%

BAC’s Dividend Payout Ratio of 33.91% is in the lower quartile for the Banks industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

HD

61.82%

Specialty Retail Industry

Max
165.81%
Q3
80.94%
Median
31.61%
Q1
0.00%
Min
0.00%

HD’s Dividend Payout Ratio of 61.82% is within the typical range for the Specialty Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

BAC vs. HD: A comparison of their Dividend Payout Ratio (TTM) against their respective Banks and Specialty Retail industry benchmarks.

Dividend at a Glance

SymbolBACHD
Dividend Yield (TTM)2.66%2.23%
Dividend Payout Ratio (TTM)33.91%61.82%

Valuation

Price-to-Earnings Ratio (TTM)

BAC

12.73

Banks Industry

Max
20.05
Q3
12.65
Median
10.21
Q1
7.54
Min
2.74

A P/E Ratio of 12.73 places BAC in the upper quartile for the Banks industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

HD

27.77

Specialty Retail Industry

Max
48.56
Q3
29.15
Median
22.00
Q1
15.46
Min
7.95

HD’s P/E Ratio of 27.77 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

BAC vs. HD: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Banks and Specialty Retail industry benchmarks.

Price-to-Sales Ratio (TTM)

BAC

2.33

Banks Industry

Max
5.06
Q3
2.98
Median
2.24
Q1
1.59
Min
0.45

The P/S Ratio is often not a primary valuation tool in the Banks industry.

HD

2.46

Specialty Retail Industry

Max
5.08
Q3
2.69
Median
1.23
Q1
0.48
Min
0.09

HD’s P/S Ratio of 2.46 aligns with the market consensus for the Specialty Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

BAC vs. HD: A comparison of their Price-to-Sales Ratio (TTM) against their respective Banks and Specialty Retail industry benchmarks.

Price-to-Book Ratio (MRQ)

BAC

1.17

Banks Industry

Max
2.18
Q3
1.36
Median
1.09
Q1
0.81
Min
0.20

BAC’s P/B Ratio of 1.17 is within the conventional range for the Banks industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

HD

35.53

Specialty Retail Industry

Max
16.93
Q3
7.98
Median
3.69
Q1
1.79
Min
0.21

At 35.53, HD’s P/B Ratio is at an extreme premium to the Specialty Retail industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

BAC vs. HD: A comparison of their Price-to-Book Ratio (MRQ) against their respective Banks and Specialty Retail industry benchmarks.

Valuation at a Glance

SymbolBACHD
Price-to-Earnings Ratio (TTM)12.7327.77
Price-to-Sales Ratio (TTM)2.332.46
Price-to-Book Ratio (MRQ)1.1735.53
Price-to-Free Cash Flow Ratio (TTM)8.1228.55