WallStSmart

DR Horton Inc (DHI)vsHovnanian Enterprises Inc (HOV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

DR Horton Inc generates 1081% more annual revenue ($33.35B vs $2.82B). DHI leads profitability with a 9.2% profit margin vs 0.6%. DHI appears more attractively valued with a PEG of 1.20. DHI earns a higher WallStSmart Score of 57/100 (C).

DHI

Buy

57

out of 100

Grade: C

Growth: 3.3Profit: 6.0Value: 5.3Quality: 8.0
Piotroski: 3/9Altman Z: 5.10

HOV

Hold

42

out of 100

Grade: D

Growth: 2.7Profit: 4.0Value: 3.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.29
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DHISignificantly Overvalued (-34.5%)

Margin of Safety

-34.5%

Fair Value

$103.30

Current Price

$137.89

$34.59 premium

UndervaluedFair: $103.30Overvalued

Intrinsic value data unavailable for HOV.

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
13.2x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

HOV1 strengths · Avg: 10.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Areas to Watch

DHI3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-4.8%2/10

Earnings declined 4.8%

HOV4 concerns · Avg: 3.3/10
PEG RatioValuation
2.004/10

Expensive relative to growth rate

Market CapQuality
$675.20M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
2.2%3/10

ROE of 2.2% — below average capital efficiency

Profit MarginProfitability
0.6%3/10

0.6% margin — thin

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 1.20 suggests the stock is reasonably priced for its growth.

Bull Case : HOV

The strongest argument for HOV centers on Price/Book.

Bear Case : DHI

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

Bear Case : HOV

The primary concerns for HOV are PEG Ratio, Market Cap, Return on Equity. A P/E of 112.2x leaves little room for execution misses. Thin 0.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

HOV carries more volatility with a beta of 1.82 — expect wider price swings.

DHI is growing revenue faster at 0.0% — sustainability is the question.

DHI generates stronger free cash flow (375M), providing more financial flexibility.

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

Bottom Line

DHI scores higher overall (57/100 vs 42/100). 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.

Hovnanian Enterprises Inc

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

Hovnanian Enterprises, Inc. is dedicated to the design, construction, marketing and sales of residential homes in the United States. The company is headquartered in Matawan, New Jersey.

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