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Stock Comparison · Structural lead, mixed market

The Home Depot vs Williams-Sonoma: Which Stock Looks Stronger in 2026?

The structural profiles are close, with Williams-Sonoma carrying a narrow edge on profitability. The Home Depot still leads on valuation and stability, which keeps the comparison from looking entirely one-sided. The market setup broadly confirms the structural lead — Williams-Sonoma holds the more constructive position. That puts structure and market broadly in agreement — Williams-Sonoma's lead looks more confirmed than conflicted.

The comparison is based on similar long-term financial trajectories, not sector labels. Both peer scores are relative to the S&P 500 universe, making them directly comparable.

Updated 2026-08-16

The clearest separation starts in profitability, with growth adding a second layer of support.

Trajectory Similarity
0.79
Similar
Peer-set rank: #21
within The Home Depot, Inc.'s functional peer set

These two companies are linked by measured long-term financial trajectory similarity within the selected peer universe.

A solid similarity means the pair shares a clearly comparable long-term financial profile, even if individual dimensions still differ.

The strongest overlap appears in margin consistency and investment intensity.

Similarity drivers
margin consistencyinvestment intensity
How to read the score
0.85–1.00 · Very similar0.70–0.84 · Similar0.55–0.69 · Moderately similarbelow 0.55 · Loose match
Peer-Relative Score
HD
The Home Depot, Inc.
51
Peer-Score
Signal qualitylow
Peer basis: S&P 500
vs
WSM
Williams-Sonoma, Inc.
56
Peer-Score
Signal qualitylow
Peer basis: S&P 500

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

The largest gaps do not all point in the same direction.

Dimension spread: HD vs WSM Profitability 48 81 Stability 58 36 Valuation 65 53 Growth 28 44 HD WSM
Gap Ranking
#1 Profitability +33
#2 Stability +22
#3 Growth +16
#4 Valuation +12
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for HD and WSM Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer HDWSM Relative valuation Structural strength

Williams-Sonoma, Inc. occupies the cheaper side of the setup map, although The Home Depot, Inc. still holds the stronger structural profile.

Valuation position uses peer-relative PE percentile (idx_pct_pe) where available.

Entry today — historical context

Where HD and WSM each sit in their own 5-year price and valuation history.

BASED ON 5-YEAR HISTORY HD Neutral · above norm 0th 50th 100th 40 pct gap WSM Elevated · above norm 0th 50th 100th 59th 99th
Today HD sits in the upper-middle of its own 5-year history (59th percentile), while WSM sits higher in its own history (99th). Within each stock's own 5-year context, HD is at a historically more favourable entry position than WSM. This reflects entry timing, not which company is structurally stronger — peer-relative analysis is a separate question addressed above.

Describes historical entry positioning only. Descriptive — not investment advice.

Relative Position vs Comparable Companies
Profitability
Both profiles are strong on profitability, but Williams-Sonoma, Inc. leads clearly.
Stability
The Home Depot, Inc. sits in the stronger part of the group on stability, while Williams-Sonoma, Inc. is closer to mid-pack.
Profitability — Dominant Gap
HD
48
WSM
81
Gap+33in favour of WSM

Capital efficiency adds support, with a 18.1-point ROIC advantage.

What keeps the gap from being one-sided

Stability still leans toward The Home Depot, Inc., so the lead is real without reading as one-way.

What this means for the comparison

The page question resolves through profitability, but stability and current pricing still keep the broader comparison from reading as fully aligned.

Explore full peer positioning in AssetNext

Break down the HD vs WSM comparison across all dimensions with the full interactive tool.

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Other comparisons with conflicting dimension signals

Explore how HD and WSM each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.