Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) Contrasted

Home improvement giants Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) are getting a close look from FBR Capital, and here's their latest take on the performance of the companies through 2011.

FBR said, "Home Depot will host its analyst day in Boston on 12/8/10. This is on the heels of the analyst day hosted by its direct competitor Lowe's last week on 11/30/10. We expect a constructive, yet more measured, meeting out of HD's management. We also expect more detailed presentations, with more tangible data points across more speakers than we what saw out of Lowe's last week (roughly eight speakers, versus four for LOW). We think HD will be more realistic about some of the near-term challenges within the sector, with less "hope and dream" than what we heard out of LOW.

"For LOW, we adjust our 2010E EPS estimate to $1.40, from $1.38, and this compares with the Street consensus estimate of $1.41 and guidance of $1.37 to $1.40 ($1.39 to $1.42, excluding charges). For 2011E for LOW, we adjust our estimate to $1.61, from $1.57, and this compares with the Street consensus estimate of $1.64. For HD, we adjust our 2010E EPS estimate to $1.95, from $1.91, and this compares with the Street consensus estimate of $1.94 and guidance of $1.94 ($1.96, excluding charges). For 2011E for HD, we adjust our estimate to $2.14, from $2.10, and this compares with the Street consensus estimate of $2.21."

FBR has a "Market Perform" rating on Home Depot, which closed Monday at $33.34, down by $0.14, or 0.42 percent. They have a "Outperform" rating on Lowes, which closed at $24.82, down $0.04, or 0.16 percent.