Head to Head Contrast: Home Depot (NYSE:HD) & Travis Perkins (OTCMKTS:TPRKY)

Travis Perkins (OTCMKTS:TPRKY) and Home Depot (NYSE:HD) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

70.9% of Home Depot shares are owned by institutional investors. 0.1% of Home Depot shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

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%

Dividends

Travis Perkins pays an annual dividend of $0.14 per share and has a dividend yield of 1.4%. 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 raised 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.

Analyst Recommendations

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 price target of $426.00, suggesting a potential downside of 0.84%. Given Home Depot’s stronger consensus rating and higher probable upside, analysts clearly believe Home Depot is more favorable than Travis Perkins.

Risk and Volatility

Travis Perkins has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Home Depot has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Earnings & Valuation

This table compares Travis Perkins and Home Depot”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travis Perkins	$6.05 billion	N/A	$47.39 million	N/A	N/A
Home Depot	$154.60 billion	2.76	$15.14 billion	$14.72	29.19

Home Depot has higher revenue and earnings than Travis Perkins.

Summary

Home Depot beats Travis Perkins on 13 of the 14 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.