Travis Perkins (OTCMKTS:TPRKY – Get Free Report) and Home Depot (NYSE:HD – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Valuation & Earnings
This table compares Travis Perkins and Home Depot”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Travis Perkins | $6.05 billion | 0.40 | $47.39 million | N/A | N/A |
Home Depot | $152.67 billion | 2.78 | $15.14 billion | $14.72 | 28.98 |
Home Depot has higher revenue and earnings than Travis Perkins.
Volatility & Risk
Profitability
This table compares Travis Perkins and Home Depot’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Travis Perkins | N/A | N/A | N/A |
Home Depot | 9.45% | 452.60% | 16.91% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Travis Perkins and Home Depot, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Travis Perkins | 0 | 0 | 0 | 0 | 0.00 |
Home Depot | 1 | 6 | 23 | 0 | 2.73 |
Home Depot has a consensus target price of $426.00, indicating a potential downside of 0.15%. Given Home Depot’s stronger consensus rating and higher possible upside, analysts plainly believe Home Depot is more favorable than Travis Perkins.
Institutional and Insider Ownership
70.9% of Home Depot shares are held by institutional investors. 0.1% of Home Depot shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Dividends
Travis Perkins pays an annual dividend of $0.14 per share and has a dividend yield of 1.5%. Home Depot pays an annual dividend of $9.00 per share and has a dividend yield of 2.1%. Home Depot pays out 61.1% of its earnings in the form of a dividend. Home Depot has increased its dividend for 15 consecutive years. Home Depot is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Home Depot beats Travis Perkins on 14 of the 15 factors compared between the two stocks.
About Travis Perkins
Travis Perkins plc engages in distribution of building material products in the United Kingdom. It operates through Merchanting and Toolstation segments. The company offers tools and building supplies. It also distributes pipeline products, as well as supplies managed services, and commercial and industrial heating and cooling solutions. In addition, the company provides in specialist civils and drainage solutions; and air-conditioning and refrigeration products and heat pumps. Further, it provides insulation and interior building products to interior building specialists, contractors, and builders; and kitchens and joinery products. Additionally, the company manufactures and supplies staircases, i-joists, precision floor kits, painted MDF profiles, and door kits/sets. The company markets its products under Travis Perkins, Toolstation, BSS, Keyline, and CCF brands. It sells its products through branches and distribution centres, as well as online. Travis Perkins plc was founded in 1797 and is headquartered in Northampton, the United Kingdom.
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.
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