AMZN vs HD

$AMZN vs $HD — ACCE Verdict

$AMZN wins this matchup, and it isn't particularly close.

The core case for Amazon rests on three pillars. First, growth: revenue up 16.6% YoY and earnings up 74.8% YoY versus $HD's revenue crawl of +4.8% and an earnings decline of -4.3%. Second, quality: $AMZN carries a net margin of 12.2% and a conservative D/E of 0.16, while $HD's balance sheet shows a D/E of 4.35 — a meaningful leverage risk if the housing cycle stays soft. Third, the ACCE composite reflects this gap directly: 68/100 for $AMZN vs 48/100 for $HD, with Amazon's Growth score of 88 towering over Home Depot's 28.

$HD does offer genuine advantages — a 2.1% dividend yield, a lower trailing P/E of 23.8 vs 31.5, and a stronger FCF yield of 3.8% vs 0.3%. Its Value score of 62 beats Amazon's 41. But both stocks trade well above their 6-model fair values (Amazon at -46.0%, HD at -41.4%), so neither is cheap.

For growth-oriented exposure, $AMZN is the clear pick. $HD suits income-focused portfolios willing to wait out a housing recovery.