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

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

Company Profile

SymbolHDTMUS
Company NameThe Home Depot, Inc.T-Mobile US, Inc.
CountryUnited StatesUnited States
GICS SectorConsumer DiscretionaryCommunication Services
GICS IndustrySpecialty RetailWireless Telecommunication Services
Market Capitalization408.20 billion USD267.25 billion USD
ExchangeNYSENasdaqGS
Listing DateSeptember 22, 1981April 19, 2007
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of HD and TMUS 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. TMUS: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolHDTMUS
5-Day Price Return-2.56%0.41%
13-Week Price Return6.39%0.47%
26-Week Price Return9.45%-8.81%
52-Week Price Return-2.02%16.67%
Month-to-Date Return-2.02%-5.00%
Year-to-Date Return2.06%8.45%
10-Day Avg. Volume3.37M4.20M
3-Month Avg. Volume3.58M4.31M
3-Month Volatility19.94%21.30%
Beta1.060.59

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.

TMUS

19.69%

Wireless Telecommunication Services Industry

Max
27.45%
Q3
19.26%
Median
13.73%
Q1
9.72%
Min
-1.57%

In the upper quartile for the Wireless Telecommunication Services industry, TMUS’s Return on Equity of 19.69% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

HD vs. TMUS: A comparison of their Return on Equity (TTM) against their respective Specialty Retail and Wireless Telecommunication Services 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.

TMUS

14.53%

Wireless Telecommunication Services Industry

Max
23.76%
Q3
13.90%
Median
10.68%
Q1
5.59%
Min
-1.18%

A Net Profit Margin of 14.53% places TMUS in the upper quartile for the Wireless Telecommunication Services industry, signifying strong profitability and more effective cost management than most of its peers.

HD vs. TMUS: A comparison of their Net Profit Margin (TTM) against their respective Specialty Retail and Wireless Telecommunication Services 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.

TMUS

23.08%

Wireless Telecommunication Services Industry

Max
29.85%
Q3
23.51%
Median
20.15%
Q1
16.37%
Min
8.96%

TMUS’s Operating Profit Margin of 23.08% is around the midpoint for the Wireless Telecommunication Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

HD vs. TMUS: A comparison of their Operating Profit Margin (TTM) against their respective Specialty Retail and Wireless Telecommunication Services industry benchmarks.

Profitability at a Glance

SymbolHDTMUS
Return on Equity (TTM)188.48%19.69%
Return on Assets (TTM)14.91%5.78%
Net Profit Margin (TTM)8.86%14.53%
Operating Profit Margin (TTM)13.09%23.08%
Gross Profit Margin (TTM)33.35%63.61%

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.

TMUS

1.21

Wireless Telecommunication Services Industry

Max
1.26
Q3
0.98
Median
0.71
Q1
0.56
Min
0.37

TMUS’s Current Ratio of 1.21 is in the upper quartile for the Wireless Telecommunication Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

HD vs. TMUS: A comparison of their Current Ratio (MRQ) against their respective Specialty Retail and Wireless Telecommunication Services 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.

TMUS

1.45

Wireless Telecommunication Services Industry

Max
2.80
Q3
2.17
Median
1.52
Q1
0.93
Min
0.48

TMUS’s Debt-to-Equity Ratio of 1.45 is typical for the Wireless Telecommunication Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

HD vs. TMUS: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Specialty Retail and Wireless Telecommunication Services 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.

TMUS

5.31

Wireless Telecommunication Services Industry

Max
12.67
Q3
6.47
Median
3.79
Q1
1.76
Min
-0.02

TMUS’s Interest Coverage Ratio of 5.31 is positioned comfortably within the norm for the Wireless Telecommunication Services industry, indicating a standard and healthy capacity to cover its interest payments.

HD vs. TMUS: A comparison of their Interest Coverage Ratio (TTM) against their respective Specialty Retail and Wireless Telecommunication Services industry benchmarks.

Financial Strength at a Glance

SymbolHDTMUS
Current Ratio (MRQ)1.151.21
Quick Ratio (MRQ)0.341.08
Debt-to-Equity Ratio (MRQ)4.911.45
Interest Coverage Ratio (TTM)10.155.31

Growth

Revenue Growth

HD vs. TMUS: 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. TMUS: 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.

TMUS

1.45%

Wireless Telecommunication Services Industry

Max
8.69%
Q3
5.44%
Median
3.79%
Q1
2.67%
Min
0.00%

TMUS’s Dividend Yield of 1.45% is in the lower quartile for the Wireless Telecommunication Services industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

HD vs. TMUS: A comparison of their Dividend Yield (TTM) against their respective Specialty Retail and Wireless Telecommunication Services 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.

TMUS

30.87%

Wireless Telecommunication Services Industry

Max
169.59%
Q3
122.96%
Median
73.67%
Q1
63.98%
Min
1.50%

TMUS’s Dividend Payout Ratio of 30.87% is in the lower quartile for the Wireless Telecommunication Services industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

HD vs. TMUS: A comparison of their Dividend Payout Ratio (TTM) against their respective Specialty Retail and Wireless Telecommunication Services industry benchmarks.

Dividend at a Glance

SymbolHDTMUS
Dividend Yield (TTM)2.28%1.45%
Dividend Payout Ratio (TTM)61.82%30.87%

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.

TMUS

21.36

Wireless Telecommunication Services Industry

Max
31.43
Q3
21.97
Median
16.89
Q1
12.46
Min
7.52

TMUS’s P/E Ratio of 21.36 is within the middle range for the Wireless Telecommunication Services 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. TMUS: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Specialty Retail and Wireless Telecommunication Services 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.

TMUS

3.10

Wireless Telecommunication Services Industry

Max
3.65
Q3
2.21
Median
1.32
Q1
1.17
Min
0.62

TMUS’s P/S Ratio of 3.10 is in the upper echelon for the Wireless Telecommunication Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

HD vs. TMUS: A comparison of their Price-to-Sales Ratio (TTM) against their respective Specialty Retail and Wireless Telecommunication Services 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.

TMUS

4.43

Wireless Telecommunication Services Industry

Max
4.87
Q3
2.86
Median
2.07
Q1
1.40
Min
0.40

TMUS’s P/B Ratio of 4.43 is in the upper tier for the Wireless Telecommunication Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

HD vs. TMUS: A comparison of their Price-to-Book Ratio (MRQ) against their respective Specialty Retail and Wireless Telecommunication Services industry benchmarks.

Valuation at a Glance

SymbolHDTMUS
Price-to-Earnings Ratio (TTM)27.1321.36
Price-to-Sales Ratio (TTM)2.403.10
Price-to-Book Ratio (MRQ)35.534.43
Price-to-Free Cash Flow Ratio (TTM)27.8921.15