WallStSmart

DR Horton Inc (DHI)vsLowe's Companies Inc (LOW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lowe's Companies Inc generates 159% more annual revenue ($86.29B vs $33.35B). DHI leads profitability with a 9.5% profit margin vs 7.7%. DHI appears more attractively valued with a PEG of 1.41. DHI earns a higher WallStSmart Score of 55/100 (C).

DHI

Buy

55

out of 100

Grade: C

Growth: 2.7Profit: 6.0Value: 5.3Quality: 7.3
Piotroski: 3/9Altman Z: 5.10

LOW

Hold

44

out of 100

Grade: D

Growth: 3.3Profit: 5.5Value: 4.0Quality: 7.0
Piotroski: 5/9Altman Z: 2.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DHISignificantly Overvalued (-31.3%)

Margin of Safety

-31.3%

Fair Value

$124.81

Current Price

$149.17

$24.36 premium

UndervaluedFair: $124.81Overvalued
LOWSignificantly Overvalued (-34.2%)

Margin of Safety

-34.2%

Fair Value

$167.88

Current Price

$233.37

$65.49 premium

UndervaluedFair: $167.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DHI3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
5.1010/10

Safe zone — low bankruptcy risk

P/E RatioValuation
14.1x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

LOW2 strengths · Avg: 9.5/10
Debt/EquityHealth
-4.3110/10

Conservative balance sheet, low leverage

Market CapQuality
$130.68B9/10

Large-cap with strong market position

Areas to Watch

DHI4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.3%2/10

Revenue declined 2.3%

EPS GrowthGrowth
-13.2%2/10

Earnings declined 13.2%

Free Cash FlowQuality
$-449.70M2/10

Negative free cash flow — burning cash

LOW4 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
7.7%3/10

7.7% margin — thin

EPS GrowthGrowth
-11.0%2/10

Earnings declined 11.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : DHI

The strongest argument for DHI centers on Altman Z-Score, P/E Ratio, Price/Book. PEG of 1.41 suggests the stock is reasonably priced for its growth.

Bull Case : LOW

The strongest argument for LOW centers on Debt/Equity, Market Cap. Revenue growth of 10.9% demonstrates continued momentum.

Bear Case : DHI

The primary concerns for DHI are Piotroski F-Score, Revenue Growth, EPS Growth.

Bear Case : LOW

The primary concerns for LOW are PEG Ratio, Return on Equity, Profit Margin.

Key Dynamics to Monitor

DHI carries more volatility with a beta of 1.45 — expect wider price swings.

LOW is growing revenue faster at 10.9% — sustainability is the question.

LOW generates stronger free cash flow (964M), providing more financial flexibility.

Monitor RESIDENTIAL CONSTRUCTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DHI scores higher overall (55/100 vs 44/100). Both earn "Buy" and "Hold" 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.

Lowe's Companies Inc

CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA

Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.

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