DR Horton Inc (DHI)vsThe Home Depot Inc (HD)
DHI
DR Horton Inc
$146.66
+2.53%
CONSUMER CYCLICAL · Cap: $40.01B
HD
The Home Depot Inc
$348.34
+2.42%
CONSUMER CYCLICAL · Cap: $337.89B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 400% more annual revenue ($166.59B vs $33.35B). DHI leads profitability with a 9.2% profit margin vs 8.4%. DHI appears more attractively valued with a PEG of 1.20. DHI earns a higher WallStSmart Score of 57/100 (C).
DHI
Buy57
out of 100
Grade: C
HD
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.9%
Fair Value
$102.97
Current Price
$146.66
$43.69 premium
Margin of Safety
-61.3%
Fair Value
$213.57
Current Price
$348.34
$134.77 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
Areas to Watch
0.0% revenue growth
Weak financial health signals
Earnings declined 4.8%
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 25.0x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : DHI
The strongest argument for DHI centers on Altman Z-Score, P/E Ratio, Price/Book. PEG of 1.20 suggests the stock is reasonably priced for its growth.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bear Case : DHI
The primary concerns for DHI are Revenue Growth, Piotroski F-Score, EPS Growth.
Bear Case : HD
The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.
Key Dynamics to Monitor
DHI carries more volatility with a beta of 1.36 — expect wider price swings.
HD is growing revenue faster at 4.8% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Monitor RESIDENTIAL CONSTRUCTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DHI scores higher overall (57/100 vs 54/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
DR Horton Inc
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
D.R. Horton, Inc. is a home construction company incorporated in Delaware and headquartered in Arlington, Texas.
The Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
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