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

Updated on October 4, 2025

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

Company Profile

Symbol	HD	MS
Company Name	The Home Depot, Inc.	Morgan Stanley
Country	United States	United States
GICS Sector	Consumer Discretionary	Financials
GICS Industry	Specialty Retail	Capital Markets
Market Capitalization	408.20 billion USD	255.59 billion USD
Exchange	NYSE	NYSE
Listing Date	September 22, 1981	February 23, 1993
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of HD and MS 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.

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

Historical Performance at a Glance

Symbol	HD	MS
5-Day Price Return	-2.56%	-1.30%
13-Week Price Return	6.39%	11.21%
26-Week Price Return	9.45%	31.84%
52-Week Price Return	-2.02%	50.51%
Month-to-Date Return	-2.02%	-1.30%
Year-to-Date Return	2.06%	24.79%
10-Day Avg. Volume	3.37M	6.01M
3-Month Avg. Volume	3.58M	5.26M
3-Month Volatility	19.94%	17.67%
Beta	1.06	1.24

Profitability

Return on Equity (TTM)

HD

188.48%

Specialty Retail Industry

Max: 64.63%
Q3: 37.13%
Median: 19.07%
Q1: 10.79%
Min: -16.66%

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.

MS

13.95%

Capital Markets Industry

Max: 38.97%
Q3: 22.24%
Median: 13.52%
Q1: 8.61%
Min: -4.25%

MS’s Return on Equity of 13.95% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

HD

8.86%

Specialty Retail Industry

Max: 21.04%
Q3: 10.99%
Median: 6.08%
Q1: 2.46%
Min: -4.37%

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.

MS

13.06%

Capital Markets Industry

Max: 69.91%
Q3: 37.24%
Median: 24.30%
Q1: 13.06%
Min: -15.18%

MS’s Net Profit Margin of 13.06% is aligned with the median group of its peers in the Capital Markets industry. This indicates its ability to convert revenue into profit is typical for the sector.

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

Operating Profit Margin (TTM)

HD

13.09%

Specialty Retail Industry

Max: 33.35%
Q3: 16.40%
Median: 9.28%
Q1: 4.05%
Min: -10.63%

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.

MS

17.07%

Capital Markets Industry

Max: 84.86%
Q3: 47.16%
Median: 32.23%
Q1: 18.65%
Min: -21.87%

MS’s Operating Profit Margin of 17.07% is in the lower quartile for the Capital Markets industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

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

Profitability at a Glance

Symbol	HD	MS
Return on Equity (TTM)	188.48%	13.95%
Return on Assets (TTM)	14.91%	1.15%
Net Profit Margin (TTM)	8.86%	13.06%
Operating Profit Margin (TTM)	13.09%	17.07%
Gross Profit Margin (TTM)	33.35%	54.42%

Financial Strength

Current Ratio (MRQ)

HD

1.15

Specialty Retail Industry

Max: 2.72
Q3: 1.81
Median: 1.38
Q1: 1.15
Min: 0.52

HD’s Current Ratio of 1.15 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

MS

0.29

Capital Markets Industry

Max: 3.37
Q3: 1.81
Median: 1.01
Q1: 0.56
Min: 0.04

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

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

Debt-to-Equity Ratio (MRQ)

HD

4.91

Specialty Retail Industry

Max: 3.44
Q3: 1.57
Median: 0.60
Q1: 0.22
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.

MS

7.68

Capital Markets Industry

Max: 6.52
Q3: 2.79
Median: 0.96
Q1: 0.28
Min: 0.00

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

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

Interest Coverage Ratio (TTM)

HD

10.15

Specialty Retail Industry

Max: 48.12
Q3: 39.12
Median: 14.13
Q1: 3.63
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.

MS

1.25

Capital Markets Industry

Max: 107.59
Q3: 48.41
Median: 10.85
Q1: 4.56
Min: -36.26

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

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

Financial Strength at a Glance

Symbol	HD	MS
Current Ratio (MRQ)	1.15	0.29
Quick Ratio (MRQ)	0.34	0.29
Debt-to-Equity Ratio (MRQ)	4.91	7.68
Interest Coverage Ratio (TTM)	10.15	1.25

Growth

Revenue Growth

HD vs. MS: 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

HD vs. MS: 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)

HD

2.28%

Specialty Retail Industry

Max: 6.48%
Q3: 2.84%
Median: 1.04%
Q1: 0.00%
Min: 0.00%

HD’s Dividend Yield of 2.28% is consistent with its peers in the Specialty Retail industry, providing a dividend return that is standard for its sector.

MS

2.53%

Capital Markets Industry

Max: 9.02%
Q3: 4.54%
Median: 2.55%
Q1: 1.27%
Min: 0.00%

MS’s Dividend Yield of 2.53% is consistent with its peers in the Capital Markets industry, providing a dividend return that is standard for its sector.

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

Dividend Payout Ratio (TTM)

HD

61.82%

Specialty Retail Industry

Max: 192.64%
Q3: 79.43%
Median: 26.55%
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.

MS

43.20%

Capital Markets Industry

Max: 199.38%
Q3: 99.28%
Median: 60.67%
Q1: 32.00%
Min: 0.00%

MS’s Dividend Payout Ratio of 43.20% is within the typical range for the Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

Symbol	HD	MS
Dividend Yield (TTM)	2.28%	2.53%
Dividend Payout Ratio (TTM)	61.82%	43.20%

Valuation

Price-to-Earnings Ratio (TTM)

HD

27.13

Specialty Retail Industry

Max: 47.04
Q3: 27.74
Median: 23.51
Q1: 13.77
Min: 7.47

HD’s P/E Ratio of 27.13 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.

MS

17.10

Capital Markets Industry

Max: 51.69
Q3: 29.42
Median: 17.58
Q1: 12.55
Min: 5.59

MS’s P/E Ratio of 17.10 is within the middle range for the Capital Markets industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

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

Price-to-Sales Ratio (TTM)

HD

2.40

Specialty Retail Industry

Max: 5.77
Q3: 2.79
Median: 1.21
Q1: 0.53
Min: 0.09

HD’s P/S Ratio of 2.40 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.

MS

2.23

Capital Markets Industry

Max: 14.65
Q3: 7.29
Median: 4.53
Q1: 2.26
Min: 0.04

In the lower quartile for the Capital Markets industry, MS’s P/S Ratio of 2.23 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

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

Price-to-Book Ratio (MRQ)

HD

35.53

Specialty Retail Industry

Max: 16.93
Q3: 7.92
Median: 3.98
Q1: 1.86
Min: 0.55

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.

MS

2.08

Capital Markets Industry

Max: 10.83
Q3: 5.12
Median: 2.66
Q1: 1.19
Min: 0.37

MS’s P/B Ratio of 2.08 is within the conventional range for the Capital Markets 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 vs. MS: A comparison of their Price-to-Book Ratio (MRQ) against their respective Specialty Retail and Capital Markets industry benchmarks.

Valuation at a Glance

Symbol	HD	MS
Price-to-Earnings Ratio (TTM)	27.13	17.10
Price-to-Sales Ratio (TTM)	2.40	2.23
Price-to-Book Ratio (MRQ)	35.53	2.08
Price-to-Free Cash Flow Ratio (TTM)	27.89	11.47