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

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

Company Profile

SymbolHDTM
Company NameThe Home Depot, Inc.Toyota Motor Corporation
CountryUnited StatesJapan
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS Industry GroupConsumer Discretionary Distribution & RetailAutomobiles & Components
GICS IndustrySpecialty RetailAutomobiles
GICS Sub-IndustryHome Improvement RetailAutomobile Manufacturers
Market Capitalization321.36 billion USD223.80 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateSeptember 22, 1981March 17, 1980
Security TypeCommon StockADR

HD is a standard domestic listing, while TM trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

HD’s market capitalization stands at 321.36 billion USD, while TM’s is 223.80 billion USD, indicating their market valuations are broadly comparable.

TM is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. HD, on the other hand, is a domestic entity.

Historical Performance

This chart compares the performance of HD and TM 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
TM
Loading price history…
HD vs. TM: Growth of a $10,000 investment over the past five years.

Historical Performance at a Glance

SymbolHDTM
5-Day Price Return-0.38%-2.90%
13-Week Price Return-16.67%-11.02%
26-Week Price Return-14.99%-0.90%
52-Week Price Return-11.06%14.38%
Month-to-Date Return-1.87%-1.49%
Year-to-Date Return-6.24%-11.26%
10-Day Avg. Volume4.58M23.34M
3-Month Avg. Volume4.14M22.66M
3-Month Volatility27.60%35.56%
Beta1.001.52

TM carries a higher beta at 1.52, indicating it’s more sensitive to market moves, while HD (beta: 1.00) exhibits greater stability.

Profitability

Return on Equity (TTM)

HD

130.02%

Specialty Retail Industry
Max
74.25%
Q3
38.54%
Median
20.59%
Q1
10.50%
Min
-3.66%

HD’s Return on Equity of 130.02% 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.

TM

9.96%

Automobiles Industry
Max
22.49%
Q3
10.26%
Median
3.87%
Q1
-0.85%
Min
-7.98%

TM’s Return on Equity of 9.96% is on par with the norm for the Automobiles industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

HD

8.60%

Specialty Retail Industry
Max
16.16%
Q3
9.63%
Median
6.63%
Q1
2.46%
Min
-2.41%

HD’s Net Profit Margin of 8.60% 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.

TM

7.33%

Automobiles Industry
Max
10.28%
Q3
4.43%
Median
2.12%
Q1
-0.33%
Min
-4.37%

A Net Profit Margin of 7.33% places TM in the upper quartile for the Automobiles industry, signifying strong profitability and more effective cost management than most of its peers.

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

Operating Profit Margin (TTM)

HD

12.68%

Specialty Retail Industry
Max
20.14%
Q3
14.16%
Median
9.28%
Q1
4.12%
Min
-1.37%

HD’s Operating Profit Margin of 12.68% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

TM

8.55%

Automobiles Industry
Max
12.16%
Q3
5.18%
Median
2.64%
Q1
-1.56%
Min
-6.50%

An Operating Profit Margin of 8.55% places TM in the upper quartile for the Automobiles industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolHDTM
Return on Equity (TTM)130.02%9.96%
Return on Assets (TTM)13.79%3.82%
Net Profit Margin (TTM)8.60%7.33%
Operating Profit Margin (TTM)12.68%8.55%
Gross Profit Margin (TTM)33.32%17.62%

Financial Strength

Current Ratio (MRQ)

HD

1.06

Specialty Retail Industry
Max
3.22
Q3
1.98
Median
1.38
Q1
1.15
Min
0.70

HD’s Current Ratio of 1.06 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.

TM

1.26

Automobiles Industry
Max
2.52
Q3
1.65
Median
1.30
Q1
1.07
Min
0.51

TM’s Current Ratio of 1.26 aligns with the median group of the Automobiles industry, indicating that its short-term liquidity is in line with its sector peers.

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

Debt-to-Equity Ratio (MRQ)

HD

4.35

Specialty Retail Industry
Max
3.50
Q3
1.55
Median
0.64
Q1
0.20
Min
0.00

With a Debt-to-Equity Ratio of 4.35, 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.

TM

1.08

Automobiles Industry
Max
2.13
Q3
1.10
Median
0.92
Q1
0.31
Min
0.11

TM’s Debt-to-Equity Ratio of 1.08 is typical for the Automobiles industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

Interest Coverage Ratio (TTM)

HD

9.13

Specialty Retail Industry
Max
111.77
Q3
48.12
Median
13.62
Q1
4.00
Min
-36.00

HD’s Interest Coverage Ratio of 9.13 is positioned comfortably within the norm for the Specialty Retail industry, indicating a standard and healthy capacity to cover its interest payments.

TM

--

Automobiles Industry
Max
106.73
Q3
41.94
Median
9.73
Q1
-3.78
Min
-19.30

Interest Coverage Ratio data for TM is currently unavailable.

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

Financial Strength at a Glance

SymbolHDTM
Current Ratio (MRQ)1.061.26
Quick Ratio (MRQ)0.261.12
Debt-to-Equity Ratio (MRQ)4.351.08
Interest Coverage Ratio (TTM)9.13--

Growth

Revenue Growth

HD vs. TM: A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

SymbolHDTM
Revenue Growth (MRQ vs Prior YoY)-3.79%8.60%
Revenue Growth (TTM vs Prior YoY)3.24%7.92%
3-Year Revenue CAGR1.52%15.25%
5-Year Revenue CAGR4.51%9.97%

EPS Growth

HD vs. TM: A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

SymbolHDTM
EPS Growth (MRQ vs Prior YoY)-14.13%-42.32%
EPS Growth (TTM vs Prior YoY)-4.52%-26.04%
3-Year EPS CAGR-5.18%20.55%
5-Year EPS CAGR3.58%20.24%

Dividend

Dividend Yield (TTM)

HD

2.85%

Specialty Retail Industry
Max
8.34%
Q3
3.49%
Median
1.32%
Q1
0.00%
Min
0.00%

HD’s Dividend Yield of 2.85% is consistent with its peers in the Specialty Retail industry, providing a dividend return that is standard for its sector.

TM

3.17%

Automobiles Industry
Max
10.94%
Q3
5.79%
Median
3.23%
Q1
0.70%
Min
0.00%

TM’s Dividend Yield of 3.17% is consistent with its peers in the Automobiles industry, providing a dividend return that is standard for its sector.

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

Dividend Payout Ratio (TTM)

HD

64.65%

Specialty Retail Industry
Max
169.80%
Q3
88.98%
Median
32.04%
Q1
0.00%
Min
0.00%

HD’s Dividend Payout Ratio of 64.65% is within the typical range for the Specialty Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

TM

59.03%

Automobiles Industry
Max
172.78%
Q3
81.73%
Median
44.54%
Q1
1.18%
Min
0.00%

TM’s Dividend Payout Ratio of 59.03% is within the typical range for the Automobiles industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolHDTM
Dividend Yield (TTM)2.85%3.17%
Dividend Payout Ratio (TTM)64.65%59.03%

Valuation

Price-to-Earnings Ratio (TTM)

HD

22.69

Specialty Retail Industry
Max
44.27
Q3
26.24
Median
19.64
Q1
13.03
Min
5.83

HD’s P/E Ratio of 22.69 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.

TM

10.58

Automobiles Industry
Max
135.32
Q3
64.37
Median
13.84
Q1
9.90
Min
3.91

TM’s P/E Ratio of 10.58 is within the middle range for the Automobiles 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. TM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Specialty Retail and Automobiles industry benchmarks.

Price-to-Sales Ratio (TTM)

HD

1.95

Specialty Retail Industry
Max
4.85
Q3
2.68
Median
1.07
Q1
0.50
Min
0.09

HD’s P/S Ratio of 1.95 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.

TM

0.78

Automobiles Industry
Max
1.48
Q3
0.90
Median
0.42
Q1
0.23
Min
0.10

TM’s P/S Ratio of 0.78 aligns with the market consensus for the Automobiles industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

Price-to-Book Ratio (MRQ)

HD

29.38

Specialty Retail Industry
Max
16.36
Q3
9.50
Median
4.66
Q1
1.96
Min
0.56

At 29.38, 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.

TM

1.12

Automobiles Industry
Max
3.42
Q3
1.77
Median
0.97
Q1
0.54
Min
0.23

TM’s P/B Ratio of 1.12 is within the conventional range for the Automobiles 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. TM: A comparison of their Price-to-Book Ratio (MRQ) against their respective Specialty Retail and Automobiles industry benchmarks.

Valuation at a Glance

SymbolHDTM
Price-to-Earnings Ratio (TTM)22.6910.58
Price-to-Sales Ratio (TTM)1.950.78
Price-to-Book Ratio (MRQ)29.381.12
Price-to-Free Cash Flow Ratio (TTM)25.4053.70