Analyzing D.R. Horton (DHI) and The Competition

D.R. Horton (NYSE:DHI – Get Free Report) is one of 150 public companies in the “Household Durables” industry, but how does it weigh in compared to its competitors? We will compare D.R. Horton to similar companies based on the strength of its risk, institutional ownership, analyst recommendations, earnings, dividends, profitability and valuation.

Profitability

This table compares D.R. Horton and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
D.R. Horton 8.74% 11.93% 8.17%
D.R. Horton Competitors -2.73% -17.15% 1.17%

Risk & Volatility

D.R. Horton has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, D.R. Horton’s competitors have a beta of 1.76, indicating that their average share price is 76% more volatile than the S&P 500.

Insider & Institutional Ownership

90.6% of D.R. Horton shares are held by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are held by institutional investors. 0.7% of D.R. Horton shares are held by company insiders. Comparatively, 18.3% of shares of all “Household Durables” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for D.R. Horton and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
D.R. Horton 3 12 5 0 2.10
D.R. Horton Competitors 1803 7415 8146 316 2.39

D.R. Horton presently has a consensus target price of $152.60, suggesting a potential upside of 4.57%. As a group, “Household Durables” companies have a potential upside of 48.59%. Given D.R. Horton’s competitors stronger consensus rating and higher probable upside, analysts clearly believe D.R. Horton has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares D.R. Horton and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
D.R. Horton $33.04 billion $3.59 billion 14.39
D.R. Horton Competitors $5.32 billion $320.74 million 8.52

D.R. Horton has higher revenue and earnings than its competitors. D.R. Horton is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

D.R. Horton pays an annual dividend of $1.80 per share and has a dividend yield of 1.2%. D.R. Horton pays out 17.8% of its earnings in the form of a dividend. As a group, “Household Durables” companies pay a dividend yield of 4.2% and pay out 32.5% of their earnings in the form of a dividend. D.R. Horton has increased its dividend for 10 consecutive years.

Summary

D.R. Horton beats its competitors on 8 of the 15 factors compared.

About D.R. Horton

(Get Free Report)

D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 118 markets across 33 states under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes. The company constructs and sells single-family detached homes; and attached homes, such as townhomes, duplexes, and triplexes. It also provides mortgage financing services; and title insurance policies, and examination and closing services, as well as engages in the residential lot development business. In addition, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; and owns non-residential real estate, including ranch land and improvements. It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.

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