Lowes Companies Inc. (LOW)

It is incredible how well they have done, second to HD-T. So far Amazon cannot do anything to kill them. The stuff they sell is heavy to ship. They have done a great job of returning capital to shareholders, but he has other ideas.

Home Depot (HD-N) or Lowe’s (LOW-N)? Home Depot is about 3 to 4 times the size of this company’s, and their store count dwarfs them. Home Depot is down about 6%-7% this year where Lowe’s is having a better time of it. However, going back 5 years, Home Depot has been a better, smoother experience. This is a tough call, but knows that Home Depot’s footprint is a bit higher.

Home Depot (HD-N) or Lowe’s (LOW-N)? On a purely statistical basis and EPS growth, this one is the better one. However, standing back and looking at the corporate culture and corporate philosophy, he prefers Home Depot.

New US home starts are strong, and most States have growth of around 10% year-over-year, but the stocks are not behaving. He would prefer to see this group get engaged before putting new money here. Also, would prefer Home Depot (HD-N), which is better at driving market share.

This one is coming on and improving their operations. They expanded their presence in Canada by buying Rona. They are in Canada, Mexico and the US. As millennials move out of parents’ basements, this stock should do well.

Just sold his Home Depot (HD-N) holdings, which is a wonderful company with a great web presence. It is growing home-store sales without opening any new stores. However, it is too expensive. Lowes is a sister company and is following up a little. Has a decent dividend, but with a little more dependence on selling appliances. Just because it is a good asset doesn’t mean it is a good investment.

Home building and new home sales in the US have just skyrocketed. Last month, new home sales increased by 15%. Also, existing home sales are increasing. Executing very well and are able to beat their estimates. She sees this as a non-performer over the next year. Prefers Home Depot (HD-N) slightly more as they execute on earnings and dividend growth more consistently.

Lowes (LOW-N) or Home Depot (HD-N)? The Home Depot has the more premier name and has executed a little bit better. In the last 12 months, they have been very similar in terms of returns. Both names will benefit from the improving housing market in the US, which will continue for years.

This is a play on the US housing recovery. Trades at a discount to Home Depot (HD-N). Really well-run company.

Lumber producers, oriented strand board producers and insulation producers had marvellous runs earlier this year as did this one and Home Depot (HD-T). Temporarily he believes there is some short-term weakness in housing. There will be 1,500,000 housing starts in the next 2-3 years. This is an area he wants to be in at some point.