Compare And Contrast Lowe's And Home Depot

Decent Essays
Abstract The intent of this paper is to do an in-depth analysis of two large, publicly traded companies and determine based on that analysis which is a better investment. The companies I selected for my analysis are Lowe’s Company Inc. (Lowe’s) and The Home Depot, Inc. (Home Depot). In this analysis, I will study the industry in which Lowe’s and Home Depot operate to include, the ratios of these companies, and how those ratios affect the companies and their approaches to earn a profit. I will also cover the history of each company, and their individual corporate goals and strategies. Finally, I will then do a side-by-side evaluation of the companies’ financial health. Comparability The Home Improvement Stores in the US account for over $300 billion market cap while taking in over $217 Billion in revenue (Home Improvement Industry, 2017). The Home Depot (HD) is the clear front runner with Lowe’s coming in second. Both companies are of comparable size; although Home Depot is slightly larger with having 2,274 stores compared to Lowe’s having 1,840 stores. Both companies are public companies and listed on the Fortune 500. Company Background and Strategy Lowe’s Lowe’s is currently ranked number two in the Home Improvement Industry by revenues. In 20161, Lowe’s generated $ 65,017 million in revenues, which was an increase of 10.06% from the previous year. 1 Home Depot and Lowe’s both companies have fiscal year that end “on the Sunday nearest to January 31,” which in
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