Warby Parker (NYSE:WRBY – Get Free Report) and Home Depot (NYSE:HD – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
93.2% of Warby Parker shares are held by institutional investors. Comparatively, 70.9% of Home Depot shares are held by institutional investors. 16.8% of Warby Parker shares are held by company insiders. Comparatively, 0.1% of Home Depot shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for Warby Parker and Home Depot, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Warby Parker | 1 | 3 | 6 | 0 | 2.50 |
| Home Depot | 1 | 13 | 18 | 1 | 2.58 |
Warby Parker currently has a consensus price target of $30.00, indicating a potential upside of 22.06%. Home Depot has a consensus price target of $375.31, indicating a potential upside of 14.23%. Given Warby Parker’s higher probable upside, equities analysts clearly believe Warby Parker is more favorable than Home Depot.
Profitability
This table compares Warby Parker and Home Depot’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Warby Parker | 0.85% | 3.36% | 1.72% |
| Home Depot | 8.41% | 106.42% | 13.76% |
Valuation & Earnings
This table compares Warby Parker and Home Depot”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Warby Parker | $871.91 million | 3.05 | $1.64 million | $0.07 | 351.13 |
| Home Depot | $169.18 billion | 1.94 | $14.16 billion | $14.29 | 22.99 |
Home Depot has higher revenue and earnings than Warby Parker. Home Depot is trading at a lower price-to-earnings ratio than Warby Parker, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Warby Parker has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500. Comparatively, Home Depot has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.
Summary
Home Depot beats Warby Parker on 9 of the 15 factors compared between the two stocks.
About Warby Parker
Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.
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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