DR Horton Inc (DHI)vsThe Home Depot Inc (HD)
DHI
DR Horton Inc
$149.17
+1.84%
CONSUMER CYCLICAL · Cap: $42.53B
HD
The Home Depot Inc
$323.05
+2.42%
CONSUMER CYCLICAL · Cap: $322.59B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 394% more annual revenue ($164.68B vs $33.35B). DHI leads profitability with a 9.5% profit margin vs 8.6%. DHI appears more attractively valued with a PEG of 1.41. DHI earns a higher WallStSmart Score of 55/100 (C).
DHI
Buy55
out of 100
Grade: C
HD
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.3%
Fair Value
$124.81
Current Price
$149.17
$24.36 premium
Margin of Safety
-29.7%
Fair Value
$243.24
Current Price
$323.05
$79.81 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 146 in profit
Safe zone — low bankruptcy risk
Generating 2.3B in free cash flow
Areas to Watch
Weak financial health signals
Revenue declined 2.3%
Earnings declined 13.2%
Negative free cash flow — burning cash
Weak financial health signals
Expensive relative to growth rate
Trading at 25.1x book value
Revenue declined 3.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : DHI
The strongest argument for DHI centers on Altman Z-Score, P/E Ratio, Price/Book. PEG of 1.41 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 Piotroski F-Score, Revenue Growth, EPS Growth.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Key Dynamics to Monitor
DHI carries more volatility with a beta of 1.45 — expect wider price swings.
DHI is growing revenue faster at -2.3% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor RESIDENTIAL CONSTRUCTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DHI scores higher overall (55/100 vs 50/100). 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.
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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