Lowe’s By The Numbers

Summary:

• Lowe’s has significantly closed the performance gap with Home Depot since Marvin Ellison took over in 2018, improving operational efficiency and returns on invested capital.
• Despite LOW’s historical underperformance, both companies have outpaced the SPY, with Lowe’s showing stronger dividend growth and recent earnings growth outpacing Home Depot.
• HD remains overvalued at 26x earnings, while Lowe’s is only slightly above its long-term average, making it a better investment today.
• While Lowe’s valuation isn’t overly exciting, it’s a better buy compared to Home Depot’s frothy valuation, warranting a hold and reinvestment of dividends.

Lowe’s Companies, Inc. (NYSE:LOW) has been a slam dunk of an investment over the long term. However, until Marvin Ellison took over in 2018, the company was a perennial laggard to Home Depot (

Analyst’s Disclosure: I/we have a beneficial long position in the shares of LOW, HD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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