(NYSE: WMT) and Home Depot (NYSE: HD) don't directly compete for shoppers, but they share many similarities as investments. They are both leaders in their respective retailing niches, for one, and tend to show steady market-share gains with each passing year. Shareholders' returns are also boosted by significant dividend and stock buyback spending as well.

But which stock is a better fit for your portfolio at these prices? Let's dive right in.

Home Depot's business expands more quickly during economic boom times, as you might expect given its smaller revenue footprint and the chain's focus on the volatile home improvement industry. Comparable-store sales jumped 11% in 2021 as shoppers spent their rising incomes aggressively. Walmart grew at a 7% rate, by comparison.

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Source Fool.com