Lowe's Companies is the clear choice for 2026 over Floor & Decor, according to a Motley Fool analysis, due to its superior expected growth rate and lower valuation ratios. Lowe's is projected to grow sales by about 8% and net income by about 2.5% in 2026, with first-quarter sales already up 10% driven by initiatives like an AI-assisted tool for contractors. In contrast, Floor & Decor expects sales to rise about 3% to $4.83 billion but net income to decline slightly to $206 million, as customers take on smaller projects. Lowe's trades at a forward P/E of 16.8x versus Floor & Decor's 25.7x, while both have a P/S ratio of 1.3x. The analysis notes that Lowe's massive scale, 7.7% net margin, and recent professional-grade acquisitions give it an edge, while Floor & Decor's specialized warehouse-format model offers long-term potential but faces near-term headwinds from high interest rates and soft home sales.
Floor & Decor Holdings IncCustomers taking on smaller projects, expected sales growth only 3% and net income decline
Lowe's Companies IncProjected 8% sales growth, Q1 sales up 10% driven by AI tool for contractors
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