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Compare Stocks › HD vs HON

The Home Depot, Inc. (HD) vs Honeywell International Inc. (HON)

HD
The Home Depot, Inc.
$328.21
VS
HON
Honeywell International Inc.
$229.03

Rewards

HD
  • ★The Home Depot, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★The Home Depot, Inc. scores 87/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
  • ★Dividend yield of 2.84% with a consistent or growing payout over the past 4 years.
HON
  • ★Honeywell International Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Honeywell International Inc. scores 85/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
  • ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.

Risks

HD
  • ⚠FCF yield of 2.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • ⚠High leverage (5.10x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Insiders have sold $2.6M worth of stock in the past 3 months — significant insider liquidation.
HON
  • ⚠Trailing P/E of 33.0x is 33% above the historical average of 24.9x — the stock trades at a premium to its own history.
  • ⚠High leverage (2.37x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠6 insider sales totaling $6.4M with no purchases in the past 3 months — insiders are reducing their exposure.

Key Valuation Metrics

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HD
HON
Valuation
$8.62B
Free Cash Flow
$4.66B
2.64%
FCF Yield
3.20%
23.05
Trailing P/E
33.00
20.12
Forward P/E
19.94
Quality & Moat
16.77%
ROIC
9.01%
110.48%
ROE
34.19%
33.32%
Gross Margin
36.93%
N/A
PEG Ratio
N/A
Balance Sheet Safety
5.10
Debt / Equity
2.37
N/A
Interest Coverage
N/A
2.56
Net Debt / EBITDA
2.67
2.84%
Dividend Yield
2.08%
HD: 5Ties: 3HON: 3
HDHON

Historical Fundamentals

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HD

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

HON

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

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HD
$0.69
created per $1 retained over 3 years
Mediocre Allocator
Σ Retained
$21.95B
Δ Market Cap
+$15.12B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
HON
$-1.48
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$7.36B
Δ Market Cap
$-10.90B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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HD
155.8% Overvalued
Price is 155.8% above estimated fair value
Current Price: $328.21
Fair Value: $128.33
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
HON
68.2% Overvalued
Price is 68.2% above estimated fair value
Current Price: $229.03
Fair Value: $136.15
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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HD

What growth rate is the market pricing in at $328?

+18.9%
Market-Implied FCF Growth Rate

Market pricing in significantly higher growth than history — aggressive.

HON

What growth rate is the market pricing in at $229?

+15.6%
Market-Implied Owner Earnings Growth
Standard FCF implies +15.8%

The market implies +15.6% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +15.8%, reflecting heavy growth investment.

Economic Moat Score

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HD
87/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Margin Stability is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.
HON
85/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Margin Stability is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

Forensic Accounting

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HD
-1.89
Possible Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
HON
-2.60
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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HD
Insiders 0.1%Institutions 74.6%Retail & Other 25.4%
No. of Institutional Holders5,084
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
HON
Insiders 0.1%Institutions 80.9%Retail & Other 19.0%
No. of Institutional Holders3,286
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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HD
0
Buys (3M)
0
Buys (12M)
BRENNEMAN GREGORY D
Director
$999,767
@ $346.66 · 2025-03-14
Open market purchases · includes direct & indirect ownership · excludes option exercises
HON
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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HD
3
Sells (3M)
14
Sells (12M)
Total value (12M): $29.80M
DEATON JOHN A.
Officer
$661,617
@ $369.00 · 2026-03-04
MCPHAIL RICHARD V
Chief Financial Officer
$940,670
@ $368.89 · 2026-03-04
ROSEBOROUGH TERESA WYNN
General Counsel
$1.00M
@ $348.52 · 2025-12-26
BROWN ANGIE
Chief Technology Officer
$695,948
@ $357.63 · 2025-12-12
BASTEK WILLIAM D
Officer
$974,445
@ $423.12 · 2025-09-12
ROSEBOROUGH TERESA WYNN
General Counsel
$2.27M
@ $413.23 · 2025-08-22
BASTEK WILLIAM D
Officer
$1.55M
@ $410.23 · 2025-08-22
DECKER EDWARD P.
Chief Executive Officer
$13.07M
@ $397.22 · 2025-08-21
PADILLA HECTOR A
Officer
$640,609
@ $404.17 · 2025-08-20
BROWN ANGIE
Chief Technology Officer
$404,070
@ $404.07 · 2025-08-20
MCPHAIL RICHARD V
Chief Financial Officer
$1.36M
@ $403.66 · 2025-08-20
DEATON JOHN A.
Officer
$3.29M
@ $369.99 · 2025-06-03
ROSEBOROUGH TERESA WYNN
General Counsel
$2.00M
@ $369.28 · 2025-05-28
SIDDIQUI FAHIM
Chief Technology Officer
$954,564
@ $367.14 · 2025-05-22
BASTEK WILLIAM D
Officer
$1.24M
@ $416.61 · 2024-11-22
HOURIGAN TIMOTHY A
Officer
$6.55M
@ $409.52 · 2024-11-18
ROSEBOROUGH TERESA WYNN
General Counsel
$9.03M
@ $408.91 · 2024-11-14
CAMPBELL ANN-MARIE
Officer
$12.24M
@ $408.40 · 2024-11-14
PADILLA HECTOR A
Officer
$1.48M
@ $408.96 · 2024-11-14
MCPHAIL RICHARD V
Chief Financial Officer
$2.65M
@ $408.45 · 2024-11-13
SCARDINO KIMBERLY R.
Officer
$617,100
@ $363.00 · 2024-08-19
ROSEBOROUGH TERESA WYNN
General Counsel
$1.87M
@ $359.32 · 2024-08-15
CAREY MATTHEW A
Officer
$19.33M
@ $345.18 · 2024-05-16
SIDDIQUI FAHIM
Chief Technology Officer
$1.03M
@ $343.79 · 2024-05-16
PADILLA HECTOR A
Officer
$28,619
@ $349.01 · 2024-05-15
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
HON
6
Sells (3M)
8
Sells (12M)
Total value (12M): $16.52M
CURRIER JAMES E
Officer
$547,725
@ $243.65 · 2026-03-02
WEST KENNETH J
Officer
$211,877
@ $242.70 · 2026-03-02
LIEBLEIN GRACE D
Director
$1.43M
@ $243.73 · 2026-02-23
DAVIS D. SCOTT
Director
$568,080
@ $240.00 · 2026-02-19
MAILLOUX ROBERT D
Officer
$1.26M
@ $239.00 · 2026-02-06
MAILLOUX ROBERT D
Officer
$2.42M
@ $229.00 · 2026-01-30
BOLDEA LUCIAN
Officer
$9.34M
@ $221.58 · 2025-08-27
WEST KENNETH J
Officer
$752,026
@ $218.10 · 2025-08-01
MADDEN ANNE T
General Counsel
$6.00M
@ $207.89 · 2025-02-10
ADAMCZYK DARIUS E
Director
$5.81M
@ $203.96 · 2024-05-15
LEWIS GREGORY P
Chief Financial Officer
$4.87M
@ $193.06 · 2024-04-29
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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HD
FearGreed
😨Fear(35/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
HON
FearGreed
😐Neutral(57/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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HD
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Fear (35)
HON
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (57)
View HD Full AnalysisView HON Full Analysis
The Home Depot, Inc. (HD) vs Honeywell International Inc. (HON) Stock Comparison | SafetyMargin.io