WallStSmart

DR Horton Inc (DHI)vsToll Brothers Inc (TOL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

DR Horton Inc generates 198% more annual revenue ($33.52B vs $11.25B). TOL leads profitability with a 12.3% profit margin vs 9.9%. TOL appears more attractively valued with a PEG of 0.99. TOL earns a higher WallStSmart Score of 75/100 (B+).

DHI

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 7.3Quality: 7.3
Piotroski: 3/9Altman Z: 5.10

TOL

Strong Buy

75

out of 100

Grade: B+

Growth: 6.7Profit: 7.0Value: 10.0Quality: 8.5
Piotroski: 3/9Altman Z: 3.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DHISignificantly Overvalued (-119.0%)

Margin of Safety

-119.0%

Fair Value

$74.80

Current Price

$133.12

$58.32 premium

UndervaluedFair: $74.80Overvalued
TOLUndervalued (+74.4%)

Margin of Safety

+74.4%

Fair Value

$629.93

Current Price

$132.00

$497.93 discount

UndervaluedFair: $629.93Overvalued

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
12.1x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

TOL6 strengths · Avg: 9.0/10
P/E RatioValuation
9.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.6010/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.998/10

Growing faster than its price suggests

Revenue GrowthGrowth
15.4%8/10

15.4% revenue growth

EPS GrowthGrowth
25.1%8/10

Earnings expanding 25.1% YoY

Areas to Watch

DHI3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-9.5%2/10

Revenue declined 9.5%

EPS GrowthGrowth
-22.2%2/10

Earnings declined 22.2%

TOL2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-11.59M2/10

Negative free cash flow — burning cash

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 1.09 suggests the stock is reasonably priced for its growth.

Bull Case : TOL

The strongest argument for TOL centers on P/E Ratio, Price/Book, Altman Z-Score. Revenue growth of 15.4% demonstrates continued momentum. PEG of 0.99 suggests the stock is reasonably priced for its growth.

Bear Case : DHI

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

Bear Case : TOL

The primary concerns for TOL are Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

DHI profiles as a value stock while TOL is a growth play — different risk/reward profiles.

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

TOL is growing revenue faster at 15.4% — sustainability is the question.

DHI generates stronger free cash flow (827M), providing more financial flexibility.

Bottom Line

TOL scores higher overall (75/100 vs 55/100) and 15.4% revenue growth. Both earn "Strong 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.

Toll Brothers Inc

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

Toll Brothers, Inc. designs, builds, markets, sells and manages the financing of a variety of detached and attached homes in luxury residential communities in the United States. The company is headquartered in Horsham, Pennsylvania.

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