WallStSmart

DR Horton Inc (DHI)vsToll Brothers Inc (TOL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

DR Horton Inc generates 196% more annual revenue ($33.35B vs $11.25B). TOL leads profitability with a 12.3% profit margin vs 9.5%. TOL appears more attractively valued with a PEG of 1.01. TOL earns a higher WallStSmart Score of 73/100 (B).

DHI

Buy

55

out of 100

Grade: C

Growth: 2.7Profit: 6.0Value: 5.3Quality: 7.3
Piotroski: 3/9Altman Z: 5.10

TOL

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 6.0Quality: 8.0
Piotroski: 3/9Altman Z: 3.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DHISignificantly Overvalued (-31.3%)

Margin of Safety

-31.3%

Fair Value

$124.81

Current Price

$149.17

$24.36 premium

UndervaluedFair: $124.81Overvalued
TOLSignificantly Overvalued (-34.2%)

Margin of Safety

-34.2%

Fair Value

$120.36

Current Price

$141.60

$21.24 premium

UndervaluedFair: $120.36Overvalued

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
14.1x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

TOL5 strengths · Avg: 8.8/10
P/E RatioValuation
10.0x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.6010/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.4%8/10

15.4% revenue growth

EPS GrowthGrowth
25.1%8/10

Earnings expanding 25.1% YoY

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

TOL2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-11.59M2/10

Negative free cash flow — burning cash

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 1.41 suggests the stock is reasonably priced for its growth.

Bull Case : TOL

The strongest argument for TOL centers on P/E Ratio, Altman Z-Score, Price/Book. Revenue growth of 15.4% demonstrates continued momentum. PEG of 1.01 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 : TOL

The primary concerns for TOL are Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

DHI profiles as a value stock while TOL is a growth play — different risk/reward profiles.

TOL carries more volatility with a beta of 1.49 — expect wider price swings.

TOL is growing revenue faster at 15.4% — sustainability is the question.

TOL generates stronger free cash flow (-12M), providing more financial flexibility.

Bottom Line

TOL scores higher overall (73/100 vs 55/100) and 15.4% revenue growth. Both earn "Strong 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.

Toll Brothers Inc

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

Toll Brothers, Inc. designs, builds, markets, sells and manages the financing of a variety of detached and attached homes in luxury residential communities in the United States. The company is headquartered in Horsham, Pennsylvania.

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