Home Depot vs. Lowe’s: Who Houses Better Performance

The Home Depot (HD) and Lowe’s Companies, Inc. (LOW) compete in the home improvement retail industry in the US, which comprises retailers that sell plumbing, kitchen fittings, hardware, appliances and other home improvement products.

The total size of the US home improvement retail industry is approximately $129.2 billion by revenues, with Home Depot leading the market with a 58.9% share. Together, Home Depot and Lowe’s account for 97% of the market share by revenues.

Although the demand for home improvement retailers is driven by both new housing starts and existing home sales, Home Depot and Lowe’s Inc.’s revenue growth rates are more dependent on existing home sales than housing starts. Existing home sales drive demand for plumbing, electrical and kitchen products, which are major contributors to these companies’ revenues, while housing starts drive demand for building materials, lumber and millwork, which contribute less to their total revenues. read more.