Comparing Kirkland’s (NASDAQ:KIRK) & Home Depot (NYSE:HD)

Kirkland’s (NASDAQ:KIRKGet Free Report) and Home Depot (NYSE:HDGet Free Report) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Kirkland’s and Home Depot, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kirkland’s 0 0 1 1 3.50
Home Depot 0 7 20 1 2.79

Kirkland’s presently has a consensus target price of $4.50, suggesting a potential upside of 275.00%. Home Depot has a consensus target price of $426.77, suggesting a potential upside of 18.77%. Given Kirkland’s’ stronger consensus rating and higher probable upside, analysts clearly believe Kirkland’s is more favorable than Home Depot.

Risk & Volatility

Kirkland’s has a beta of 2.38, meaning that its share price is 138% more volatile than the S&P 500. Comparatively, Home Depot has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Earnings & Valuation

This table compares Kirkland’s and Home Depot”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kirkland’s $441.36 million 0.06 -$23.13 million ($1.73) -0.69
Home Depot $162.95 billion 2.19 $14.81 billion $14.74 24.38

Home Depot has higher revenue and earnings than Kirkland’s. Kirkland’s is trading at a lower price-to-earnings ratio than Home Depot, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kirkland’s and Home Depot’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kirkland’s -6.06% N/A -8.47%
Home Depot 8.98% 242.51% 15.45%

Institutional & Insider Ownership

15.4% of Kirkland’s shares are held by institutional investors. Comparatively, 70.9% of Home Depot shares are held by institutional investors. 3.0% of Kirkland’s shares are held by insiders. Comparatively, 0.1% of Home Depot shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Home Depot beats Kirkland’s on 10 of the 14 factors compared between the two stocks.

About Kirkland’s

(Get Free Report)

Kirkland’s, Inc. operates as a specialty retailer of home décor and furnishings in the United States. Its stores provide various merchandise, including holiday décor, furniture, textiles, ornamental wall décor, decorative accessories, art, mirrors, home fragrance, lighting, floral, housewares, outdoor, and gifts. The company operates its stores under the Kirkland’s, Kirkland’s Home, Kirkland’s Home Outlet, Kirkland’s Outlet, and Kirkland Collection names. It also operates an e-commerce website, kirklands.com. The company was founded in 1966 and is headquartered in Brentwood, Tennessee.

About Home Depot

(Get Free Report)

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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