Better Buy: Home Depot vs. Target
Home Depot (NYSE: HD) and Target (NYSE: TGT) have been thriving despite numerous retail store closures over the past several years. These two well-known brick-and-mortar retailers have been able to drive top-line growth and deliver market-beating stock returns and growing dividends to shareholders. But which is the better choice to add to your portfolio today?
Although sales through the companies' e-commerce websites are a source of growth, each is still heavily dependent on brick-and-mortar stores for the bulk of its revenue. For Target, it's added only 4% to its store base (63 stores) since 2014 to reach 1,862 today. Same-store sales growth has been tepid for the last five years, hovering in the low single digits with a high point in 2018 with full-year comps coming in at 5%. Current same-store sales aren't much better -- for the first nine months of 2019, they were 4.2%. Revenue per square foot (reported annually) was $314 for full-year 2018, only 4% higher than it was four years earlier.
Image source: Getty Images.
Source Fool.com
