WallStSmart

DR Horton Inc (DHI)vsLennar Corporation (LEN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

DR Horton Inc generates 2% more annual revenue ($33.35B vs $32.74B). DHI leads profitability with a 9.5% profit margin vs 4.9%. DHI appears more attractively valued with a PEG of 1.28. 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: 8.5
Piotroski: 3/9Altman Z: 5.10

LEN

Hold

46

out of 100

Grade: D+

Growth: 2.7Profit: 5.0Value: 5.3Quality: 8.5
Piotroski: 3/9Altman Z: 3.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DHISignificantly Overvalued (-52.8%)

Margin of Safety

-52.8%

Fair Value

$100.86

Current Price

$146.49

$45.63 premium

UndervaluedFair: $100.86Overvalued
LENUndervalued (+11.0%)

Margin of Safety

+11.0%

Fair Value

$136.01

Current Price

$90.49

$45.52 discount

UndervaluedFair: $136.01Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DHI4 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
5.1010/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

P/E RatioValuation
14.5x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

LEN4 strengths · Avg: 9.3/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.6610/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

P/E RatioValuation
14.2x8/10

Attractively priced relative to earnings

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

LEN4 concerns · Avg: 2.8/10
Return on EquityProfitability
7.5%3/10

ROE of 7.5% — below average capital efficiency

Profit MarginProfitability
4.9%3/10

4.9% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
12.282/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DHI

The strongest argument for DHI centers on Altman Z-Score, Debt/Equity, P/E Ratio. PEG of 1.28 suggests the stock is reasonably priced for its growth.

Bull Case : LEN

The strongest argument for LEN centers on Price/Book, Altman Z-Score, Debt/Equity.

Bear Case : DHI

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

Bear Case : LEN

The primary concerns for LEN are Return on Equity, Profit Margin, Piotroski F-Score. Thin 4.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

LEN carries more volatility with a beta of 1.40 — expect wider price swings.

DHI is growing revenue faster at -2.3% — sustainability is the question.

LEN generates stronger free cash flow (-358M), providing more financial flexibility.

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

Bottom Line

DHI scores higher overall (55/100 vs 46/100). 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.

Lennar Corporation

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

Lennar Corporation is a home construction and real estate company based in Fontainebleau, Florida.

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