The Home depot has a profit margin of 6%. When compared to Lowes which has a profit margin of 3.88% you can see this profit margin puts home depot in a very strong position. In addition to Lowes the industries profit margin is 3.87%. Home depot has a profit margin more than 50% higher than Lowes, and the similarly place industry average. This means The Home Depot is using each dollar more efficiently, and therefore making more money by a wide margin than their competitor.
The Home depots return on assets is 11%. Lowes has a much lower return on assets at 5.91% and the industry average is even lower at 5.86%. The return on investment for the Home Depot is more than double that of Lowes and the industry standard. This means that the Home Depot makes far more for every dollar of assets than their competitors.
The Home Depot’s return on equity for last fiscal year was 26%. Lowes return on equity was 12.81% and the industry average was 10.55, both considerably lower than the Home Depot. This says that the investor’s equity is worth considerably more than double Lowes and the industry average.
Home Depot’s Current ratio is 1.34x. Lowes has a current ratio is 1.27, and the industry average is