Home Depot (NYSE:HD – Get Free Report) and Warby Parker (NYSE:WRBY – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.
Earnings and Valuation
This table compares Home Depot and Warby Parker”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Home Depot | $164.68 billion | 1.71 | $14.16 billion | $14.29 | 19.81 |
| Warby Parker | $871.91 million | 3.35 | $1.64 million | $0.07 | 385.80 |
Profitability
This table compares Home Depot and Warby Parker’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Home Depot | 8.41% | 106.42% | 13.76% |
| Warby Parker | 0.85% | 3.36% | 1.72% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Home Depot and Warby Parker, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Home Depot | 1 | 13 | 18 | 0 | 2.53 |
| Warby Parker | 1 | 3 | 7 | 0 | 2.55 |
Home Depot currently has a consensus target price of $375.18, indicating a potential upside of 32.56%. Warby Parker has a consensus target price of $30.08, indicating a potential upside of 11.39%. Given Home Depot’s higher possible upside, equities analysts clearly believe Home Depot is more favorable than Warby Parker.
Volatility & Risk
Home Depot has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Warby Parker has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.
Insider and Institutional Ownership
70.9% of Home Depot shares are owned by institutional investors. Comparatively, 93.2% of Warby Parker shares are owned by institutional investors. 0.1% of Home Depot shares are owned by insiders. Comparatively, 16.8% of Warby Parker shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Home Depot beats Warby Parker on 8 of the 14 factors compared between the two stocks.
About Home Depot
The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, and building service contractors, as well as specialty tradesmen, such as electricians, plumbers, and painters. It sells its products through websites, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations (MRO) products and related services; and The Home Depot stores. The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.
About Warby Parker
Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.
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