In the following video, Jason Moser of Motley Fool One and David Meier of Motley Fool Million Dollar Portfolio take a look at the earnings reports from Lowe's (NYSE:LOW) and Home Depot (NYSE:HD)and compare the two companies. While Home Depot was able to achieve a bigger increase in sales than Lowe's, Jason notes that as a larger company with more locations, Home Depot faces fewer headwinds than Lowe's does. Home Depot also made a sizable increase to its dividend, something investors were glad to see. In this video, Jason tells us why he thinks both of these stocks might be a bit pricey at the moment and who the dark horse to watch in this sector may be.

David Meier has no position in any stocks mentioned. Jason Moser owns shares of Amazon.com. The Motley Fool recommends Amazon.com, Home Depot, Lowe's, and Lumber Liquidators. It also owns shares of Amazon.com and Lumber Liquidators. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.