HD vs PEP Stock Comparison
The Home Depot, Inc. vs PepsiCo, Inc.
PEP leads
PEP leads by 14 AIQ points, primarily on Momentum and Quality, having only recently taken the lead back from HD. Wall Street currently favors HD on target upside.
Competitive: 4 of 6 evidence groups support PEP, and the lead recently changed hands.
The Home Depot, Inc.
PepsiCo, Inc.
The Algovestiq AIQ Score currently favors PEP over HD, 55 versus 41 as of Sep 2, 2026. PEP's advantage is driven primarily by stronger momentum and quality, while HD holds the stronger risk resilience profile. PEP also shows the stronger technical structure relative to its 50-day moving average, though analyst target upside currently favors HD. 4 of 6 covered evidence groups favor PEP today, and the comparison is rated Competitive on stability: the lead has already changed hands inside the comparison window. PEP lead: Reversed — HD led by 3 AIQ points 30 sessions ago; PEP now leads by 14.
Compare The Home Depot, Inc. and PepsiCo, Inc. across the Algovestiq AIQ Score, valuation, quality, momentum, risk, technicals and analyst expectations.
AIQ Factor Divergence
Where the two separate, on the four dimensions behind the AIQ Score. Bars read outward from a shared zero: further from the centre is a wider gap.
- Momentum25%19 vs 59PEP +40
- Quality30%55 vs 64PEP +9
- Value30%36 vs 45PEP +9
- Risk Resilience15%58 vs 52HD +6
4 of 6 evidence groups favor PEP. PEP’s edge is concentrated in momentum and quality; HD keeps a meaningful risk resilience edge.
What changed since the last close
Latest scored session 2026-09-01, compared against the prior scored session 2026-08-31.
No factor moved materially.
No new signals fired.
No factor moved materially.
No new signals fired.
PEP's lead was unchanged in the latest snapshot.
Deeper signal detail for each name lives on its own signals page — HD and PEP both carry a full feed there.
The central trade-off
PEP (PepsiCo, Inc.): the stronger current systematic profile, led by momentum and quality.
HD (The Home Depot, Inc.): the counter-case, on risk resilience, analyst expectations — but at materially higher volatility, 23.8% against 16.5%.
The AIQ Score and Wall Street therefore point in different directions on this pair.
Which one fits your objective
The same two names rank differently depending on what you are optimizing for. All six reads are shown at once — none of them is hidden behind a toggle.
Balanced
PEPPEP on the overall AIQ Score, which weights Quality and Value at 30% each.
Growth
PEPPEP on combined revenue and EPS growth.
Value
PEPPEP on the peer-relative Value factor, by 9 points.
Momentum
PEPPEP on the Momentum factor, by 40 points.
Lower downside
HDHD on Risk Resilience, by 6 points.
Analyst upside
HDHD on implied upside to the consensus price target.
AIQ vs Wall Street
The model and the Street disagree here: AIQ favors PEP, analyst targets favor HD. That disagreement is the most useful thing on this page.
| Measure | HD | PEP | Note |
|---|---|---|---|
| Implied upside to target | +16% | +11.6% | HD has more room |
| Target dispersion | +28.3% | +31.1% | Lower is tighter analyst agreement |
| Consensus | Buy | Hold | Context, not a primary driver |
| Analysts covering | 13 | 11 | Higher coverage generally improves confidence |
The two are measuring different things. The AIQ Score reads current fundamentals, valuation, trend and risk; analyst targets price forward expectations. A divergence of this kind is either a contrarian opportunity or a sign the model is missing something already priced in — it is worth resolving before acting on either.
Analyst targets are expectations, not predictions. Dispersion matters as much as the midpoint.
AIQ Agreement Matrix
4 of 6 covered evidence groups favor PEP. A wide gap backed by one group is a weaker case than a narrow gap backed by five.
| Evidence group | Favors | Reading |
|---|---|---|
| AIQ Score | PEP | 41 vs 55 |
| Fundamentals | PEPon balance | revenue growth 9.3% vs 24.4%; EPS growth 27.8% vs 28.2%; ROE 113.3% vs 50.4%; gross margin 33.1% vs 54%; operating margin 12.4% vs 15% — PEP takes 3 of 4 decided legs, not all of them |
| Valuation | PEP | Value 36 vs 45 |
| Technicals | PEP | Price vs 50-day -5.9% vs 1%; vs 200-day -4.9% vs -5.8% |
| Risk Resilience | HD | Risk Resilience 58 vs 52 |
| Analyst expectations | HD | Target upside 16% vs 11.6% |
✓ agrees with the overall verdict · ✕ points the other way. Groups marked “not covered” lack data on one or both of HD and PEP and are excluded from the count.
AIQ Decision Stability
The two are close enough that your objective, not the score, should decide.
- The AIQ gap is wide at 14 points. (supports the conclusion holding)
- The lead has already changed hands inside the comparison window. (argues the conclusion is provisional)
Stability combines the score gap, how broadly the evidence agrees, how steady the lead has been across daily snapshots, the current signal state on both names, and analyst dispersion on PEP.
How the comparison changed
120 daily snapshots · Apr 20 – Sep 1PEP lead: Reversed — HD led by 3 AIQ points 30 sessions ago; PEP now leads by 14.
- Today
- PEP +14
- 41 vs 55
- 7 sessions ago
- PEP +10
- 41 vs 51
- 30 sessions ago
- HD +3
- 55 vs 52
- 90 sessions ago
- HD +6
- 56 vs 50
The lead changed hands 2 times in this window, most recently on Aug 12 when PEP moved ahead of HD.
AIQ Signal Divergence
Only the signals that bear on the head-to-head. A conflicted name is carrying bullish and bearish rules at the same time — the technical evidence is not pointing one way.
1 bullish / 3 bearish, conflicted
- Death Cross Active — bearish, trend, long horizon (1.31%)
- RSI Oversold - Potential Bounce — bullish, momentum, short horizon
- Downtrend Structure Active — bearish, trend, long horizon
0 bullish / 2 bearish / 1 neutral
- Death Cross Active — bearish, trend, long horizon (6.53%)
- Bollinger Band Squeeze — neutral, volatility, short horizon
- MACD Bearish Crossover — bearish, momentum, short horizon
HD is conflicted, so the timing case there is weaker than the score alone suggests.
Price vs model alignment
Whether the latest session's price move confirms what the model did over the same session, or contradicts it.
Neither the price nor the AIQ Score moved enough in the latest session to confirm or contradict the other (price +0.13%, AIQ 0 points).
Neither the price nor the AIQ Score moved enough in the latest session to confirm or contradict the other (price +0.99%, AIQ 0 points).
What would flip this result
A state, not a forecast. These are the specific, observable changes that would reverse the verdict — not a price prediction.
- 1HD closes the Momentum gap — currently 40 points behind, the largest single contributor to PEP's edge.
- 2HD's Death Cross Active resolves — a bearish trend rule currently active against it.
- 3PEP starts generating bearish momentum or trend signals.
- 4A regime shift changes factor weighting — the composite weights Quality and Value at 30% each, so a rotation toward either would move the result most.
The full evidence
Every number behind the verdict. The leader is called above each group so you are not left to solve it from the table.
Fundamentals
PEP leads on balance| Metric | HD | PEP |
|---|---|---|
| Revenue growth (YoY) | 9.3% | 24.4% |
| EPS growth (YoY) | 27.8% | 28.2% |
| Gross margin | 33.1% | 54% |
| Operating margin | 12.4% | 15% |
| Return on equity | 113.3% | 50.4% |
| Debt to equity | 4.18 | 2.41 |
Technicals
PEP has the stronger structure| Metric | HD | PEP |
|---|---|---|
| RSI (14) | 23.5 | 55 |
| ADX (14) | 10.8 | 11.7 |
| Price vs 50-day | -5.9% | 1% |
| Price vs 200-day | -4.9% | -5.8% |
| Volatility (1M, annualized) | 23.8% | 16.5% |
Risk
HD is the more resilient| Metric | HD | PEP |
|---|---|---|
| Beta | 0.7 | -0.26 |
| Sharpe ratio | -0.89 | -0.3 |
| Sortino ratio | -1.53 | -0.51 |
| Max drawdown | -29.7% | -20.9% |
| Current drawdown | -22.6% | -17.7% |
| Annualized volatility | 25.3% | 21.3% |
| Value at risk (95%) | -2.4% | -2.1% |
Straight answers
Each answer is regenerated from the current snapshot, not written once and left to age.
Which is better, HD or PEP?
On the Algovestiq AIQ Score, PEP is the stronger of the two as of Sep 2, 2026, scoring 55 against HD's 41. The edge comes from momentum and quality. HD is not without a case — it holds the better risk resilience profile, which matters more if that is the objective you are optimizing for. This is a systematic score, not a recommendation: it ranks the two on the same evidence, it does not know your holding period or tax position.
Is HD or PEP the better buy right now?
PEP carries the stronger systematic profile as of Sep 2, 2026, and the comparison is rated Competitive — 4 of 6 covered evidence groups agree. A Competitive rating means the two are close enough that your objective, not the score, should decide.
Why does the AIQ Score favor PEP over HD?
The composite weights Quality at 30%, Value at 30%, Momentum at 25% and Risk Resilience at 15%. PEP leads Momentum by 40 points; PEP leads Quality by 9 points; PEP leads Value by 9 points. Where the two split, the factor with the larger weight carries the result.
Which has more analyst upside, HD or PEP?
Analyst price targets imply +16% upside for HD and +11.6% for PEP, so the Street currently favors HD. That points the opposite way to the AIQ Score, which favors PEP. The two are measuring different things: the model reads current fundamentals, valuation, trend and risk; the Street is pricing forward expectations. A divergence of this kind is either a contrarian opportunity or a sign the model is missing something the analysts have already priced — it is the single most useful row on this page to investigate. Analyst targets are expectations, not predictions, and dispersion matters as much as the midpoint.
Which is better value, HD or PEP?
PEP is the better-valued of the two on the peer-relative Value factor. PEP on the peer-relative Value factor, by 9 points. The Value factor reads valuation relative to sector peers and to the company's own fundamental quality, so it is not the same as simply having the lower multiple.
Which has stronger growth, HD or PEP?
PEP on combined revenue and EPS growth. Growth here is measured on reported revenue and earnings, not on forward estimates — it describes what the businesses have delivered, not what the Street expects next.
Which has stronger momentum, HD or PEP?
PEP on the Momentum factor, by 40 points. Momentum carries 25% of the AIQ composite. It has documented persistence over three- to twelve-month horizons, which makes it a timing input rather than a reason to hold something indefinitely.
Which is riskier, HD or PEP?
HD is the more resilient of the two, so the other name carries the higher downside risk. HD on Risk Resilience, by 6 points. The Risk Resilience factor weights 15% of the composite; position sizing usually responds to it more usefully than the buy/avoid decision does.
Is HD more profitable than PEP?
The profitability evidence is mixed: gross margin 33.1% vs 54%; operating margin 12.4% vs 15%; roe 113.3% vs 50.4%. HD leads on one measure and PEP on two measures, and there is no single profitability composite that resolves the split — which of the two reads as "more profitable" depends on whether you weight pricing power or operating leverage.
Is PEP's lead over HD getting stronger or weaker?
PEP lead: Reversed — HD led by 3 AIQ points 30 sessions ago; PEP now leads by 14. This is measured from 120 daily comparison snapshots between 2026-04-20 and 2026-09-01. The lead has changed hands 2 times in that window, most recently on 2026-08-12, when PEP moved ahead of HD.
What would change the HD vs PEP verdict?
The result is a state, not a forecast, so it changes when the underlying evidence changes. Concretely: HD closes the Momentum gap — currently 40 points behind, the largest single contributor to PEP's edge; HD's Death Cross Active resolves — a bearish trend rule currently active against it; PEP starts generating bearish momentum or trend signals; a regime shift changes factor weighting — the composite weights Quality and Value at 30% each, so a rotation toward either would move the result most.
What do the current signals say about HD and PEP?
HD: 1 bullish / 3 bearish, conflicted. PEP: 0 bullish / 2 bearish / 1 neutral. A conflicted state means bullish and bearish rules are active on the same name at once — the technical evidence is not pointing one way, and a decision taken on it carries more timing risk. The most decision-relevant rule on HD is Death Cross Active (bearish, long horizon). On PEP it is Death Cross Active (bearish, long horizon).
Compare HD and PEP with others
How this comparison is scored
The Algovestiq AIQ Score composites four factors — Quality (30%), Value (30%), Momentum (25%) and Risk (15%). Sentiment is reported separately as SentimentPulse and is not folded into the composite. Scores refresh every trading day, and this page regenerates from the latest snapshot rather than being written once.
The verdict names a leader, states how broadly six independent evidence groups agree, and rates how durable that conclusion is given the score gap, its recent trajectory and the current signal state on both names.
How to use side-by-side comparison →This comparison is informational and educational, not investment advice. AIQ scores update daily; re-check after earnings, guidance or macro data that materially changes either name’s factor profile.