Financial Comparison: D.R. Horton (DHI) vs. 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 contrast to its peers? We will compare D.R. Horton to related companies based on the strength of its institutional ownership, valuation, risk, dividends, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and target prices for D.R. Horton and its peers, as provided by MarketBeat.com.

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

Risk and 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 peers have a beta of 1.76, indicating that their average share price is 76% more volatile than the S&P 500.

Institutional and Insider Ownership

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

Earnings and Valuation

This table compares D.R. Horton and its peers gross revenue, earnings per share (EPS) and valuation.

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

Profitability

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

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 peers on 8 of the 15 factors compared.

D.R. Horton Company Profile

(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.