DR Horton Inc (DHI)vsMeritage Corporation (MTH)
DHI
DR Horton Inc
$146.49
+0.66%
CONSUMER CYCLICAL · Cap: $43.70B
MTH
Meritage Corporation
$68.33
+0.21%
CONSUMER CYCLICAL · Cap: $4.97B
Smart Verdict
WallStSmart Research — data-driven comparison
DR Horton Inc generates 494% more annual revenue ($33.35B vs $5.62B). DHI leads profitability with a 9.5% profit margin vs 6.9%. MTH appears more attractively valued with a PEG of 0.54. MTH earns a higher WallStSmart Score of 57/100 (C).
DHI
Buy55
out of 100
Grade: C
MTH
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-52.8%
Fair Value
$100.86
Current Price
$146.49
$45.63 premium
Margin of Safety
+5.6%
Fair Value
$82.71
Current Price
$68.33
$14.38 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
Weak financial health signals
Revenue declined 2.3%
Earnings declined 13.2%
Negative free cash flow — burning cash
ROE of 7.6% — below average capital efficiency
6.9% margin — thin
Weak financial health signals
Revenue declined 17.7%
Comparative Analysis Report
WallStSmart ResearchBull 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 : MTH
The strongest argument for MTH centers on Price/Book, Altman Z-Score, PEG Ratio. PEG of 0.54 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 : MTH
The primary concerns for MTH are Return on Equity, Profit Margin, Piotroski F-Score.
Key Dynamics to Monitor
MTH carries more volatility with a beta of 1.41 — expect wider price swings.
DHI is growing revenue faster at -2.3% — sustainability is the question.
MTH generates stronger free cash flow (97M), providing more financial flexibility.
Monitor RESIDENTIAL CONSTRUCTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MTH scores higher overall (57/100 vs 55/100). 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.
Meritage Corporation
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
Meritage Homes Corporation designs and builds single-family homes in the United States. The company is headquartered in Scottsdale, Arizona.
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