DR Horton Inc (DHI)vsToll Brothers Inc (TOL)
DHI
DR Horton Inc
$149.17
+1.84%
CONSUMER CYCLICAL · Cap: $42.53B
TOL
Toll Brothers Inc
$141.60
+3.15%
CONSUMER CYCLICAL · Cap: $13.24B
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
Buy55
out of 100
Grade: C
TOL
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.3%
Fair Value
$124.81
Current Price
$149.17
$24.36 premium
Margin of Safety
-34.2%
Fair Value
$120.36
Current Price
$141.60
$21.24 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Reasonable price relative to book value
15.4% revenue growth
Earnings expanding 25.1% YoY
Areas to Watch
Weak financial health signals
Revenue declined 2.3%
Earnings declined 13.2%
Negative free cash flow — burning cash
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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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