WallStSmart

DR Horton Inc (DHI)vsKB Home (KBH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

DR Horton Inc generates 438% more annual revenue ($33.52B vs $6.24B). DHI leads profitability with a 10.0% profit margin vs 6.9%. DHI appears more attractively valued with a PEG of 1.09. DHI earns a higher WallStSmart Score of 55/100 (C).

DHI

Buy

55

out of 100

Grade: C

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

KBH

Buy

51

out of 100

Grade: C-

Growth: 2.0Profit: 5.5Value: 4.7Quality: 7.3
Piotroski: 2/9Altman Z: 3.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DHISignificantly Overvalued (-119.5%)

Margin of Safety

-119.5%

Fair Value

$74.66

Current Price

$137.69

$63.03 premium

UndervaluedFair: $74.66Overvalued
KBHSignificantly Overvalued (-81.5%)

Margin of Safety

-81.5%

Fair Value

$35.22

Current Price

$52.12

$16.90 premium

UndervaluedFair: $35.22Overvalued

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
12.6x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

KBH3 strengths · Avg: 10.0/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.6610/10

Safe zone — low bankruptcy risk

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%

KBH4 concerns · Avg: 2.5/10
Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
5.972/10

Expensive relative to growth rate

Revenue GrowthGrowth
-15.3%2/10

Revenue declined 15.3%

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 : KBH

The strongest argument for KBH centers on P/E Ratio, Price/Book, Altman Z-Score.

Bear Case : DHI

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

Bear Case : KBH

The primary concerns for KBH are Profit Margin, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

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

DHI is growing revenue faster at -9.5% — sustainability is the question.

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

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

Bottom Line

DHI scores higher overall (55/100 vs 51/100). 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.

KB Home

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

KB Home is a home construction company in the United States. The company is headquartered in Los Angeles, California.

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