What is the Difference Between Lowes and Home Depot is a question that many customers in the United States keep asking because of their similarity and proximity in the home improvement sector.
While it is true that some chains have “sister stores” like Olive Garden and Red Lobster, it is false that there is any direct relationship between Lowe’s and Home Depot management.
There are similarities to be found in these home improvement giant retailers for sure, but there are also many differences. Some of those differences just might surprise you.
Corporate Comparison in General
At the corporate level, Lowe’s and Home Depot differ significantly.
According to Comparably, Lowe’s ranks #127 in the Global Top 1000 Brands based on customer ratings, while Home Depot ranks #85 in the Top 100.
If you’re interested in investing, Lowe’s current market cap is $136.7 billion, while Home Depot’s is $301.06 billion.
Employees generally rate Home Depot’s corporate culture, CEO, and basic working conditions higher than Lowe’s employees, despite the fact that neither store has a high negative rating.
The Distinction Between Stores and Real Estate
According to Investopedia, Home Depot and Lowe’s are the world’s two largest home improvement retailers, as evidenced by annual company reports and other data.
These retailers have a sizable real estate footprint in the United States and Canada. Lowe’s stores have an average of 112,000 square feet of enclosed space and 32,000 additional garden center areas.
Home Depot, on the other hand, has approximately 105,000 square feet of enclosed space and a slightly smaller garden area (24,000 square feet).
Revenue and Sales Differences
Lowe’s may have the advantage in terms of seniority and square footage, but Home Depot is the clear leader in terms of revenue and sales.
According to Statista, this revenue trend serves as a long-term differentiator between the two brands. Home Depot had $132.11 billion in sales in 2020, while Lowe’s had $89.6 billion.
That’s a difference of $42.51 billion. In 2016, Home Depot reported $94.06 billion in sales compared to Lowe’s $65.02 billion, and in 2011, Home Depot reported $70.4 billion in sales compared to Lowe’s $50.21 billion.
While Home Depot has the most customers, both brands are clearly strong and expanding.
At the time of publication, Home Depot’s stock price was $408.81 per share and Lowe’s was $255.05 per share (via Google Finance).
The Motley Fool suggests that a Home Depot investment may have more long-term potential, but that these two brands essentially have a “duopoly” on the market.
Difference in Commercial Services
Professional and commercial services can account for a sizable portion of a retailer’s revenue, as demonstrated by Home Depot and Lowe’s.
To grasp the magnitude of these sales, consider the cost difference between a single DIY bathroom and a contractor who plans to remodel an entire apartment building.
Lowe’s reports that professional contracts account for 20% to 25% of sales, while Home Depot reports that similar professional contracts account for 45% of sales.
Sponsorship and Advertising
Comparably notes that Lowe’s has a neutral public perception while Home Depot has a negative one, despite the fact that Home Depot ranks higher in customer service, product quality, and pricing in their metrics.
This could be related to how much public relations each brand does.
Snopes explains that Lowe’s has been reported as awarding $25 million to minority-owned businesses during the pandemic, while Home Depot’s founder donated $7 million to the polarizing Donald Trump.