D.R. Horton (NYSE:DHI – Get Free Report) and Sonos (NASDAQ:SONO – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Volatility & Risk
D.R. Horton has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Sonos has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for D.R. Horton and Sonos, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| D.R. Horton | 0 | 10 | 5 | 0 | 2.33 |
| Sonos | 0 | 3 | 2 | 0 | 2.40 |
Insider and Institutional Ownership
90.6% of D.R. Horton shares are held by institutional investors. Comparatively, 85.8% of Sonos shares are held by institutional investors. 0.7% of D.R. Horton shares are held by company insiders. Comparatively, 1.3% of Sonos shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares D.R. Horton and Sonos”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| D.R. Horton | $34.25 billion | 1.13 | $3.59 billion | $10.51 | 13.22 |
| Sonos | $1.44 billion | 1.19 | -$61.14 million | $0.45 | 32.33 |
D.R. Horton has higher revenue and earnings than Sonos. D.R. Horton is trading at a lower price-to-earnings ratio than Sonos, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares D.R. Horton and Sonos’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| D.R. Horton | 9.15% | 12.47% | 8.59% |
| Sonos | 3.82% | 19.10% | 8.67% |
Summary
Sonos beats D.R. Horton on 8 of the 14 factors compared between the two stocks.
About D.R. Horton
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.
About Sonos
Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells audio products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers wireless, portable, and home theater speakers; components; and accessories. The company offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its website. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was incorporated in 2002 and is headquartered in Santa Barbara, California.
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