DHI vs. PHM, NVR, TOL, URI, LEN, CRH, OTIS, PWR, MLM, and VMC
Should you be buying D.R. Horton stock or one of its competitors? The main competitors of D.R. Horton include PulteGroup (PHM), NVR (NVR), Toll Brothers (TOL), United Rentals (URI), Lennar (LEN), CRH (CRH), Otis Worldwide (OTIS), Quanta Services (PWR), Martin Marietta Materials (MLM), and Vulcan Materials (VMC). These companies are all part of the "construction" sector.
PulteGroup (NYSE:PHM) and D.R. Horton (NYSE:DHI) are both large-cap construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, media sentiment, institutional ownership, profitability, community ranking, analyst recommendations and valuation.
PulteGroup pays an annual dividend of $0.80 per share and has a dividend yield of 0.7%. D.R. Horton pays an annual dividend of $1.20 per share and has a dividend yield of 0.8%. PulteGroup pays out 6.4% of its earnings in the form of a dividend. D.R. Horton pays out 8.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PulteGroup has increased its dividend for 6 consecutive years and D.R. Horton has increased its dividend for 9 consecutive years. D.R. Horton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
D.R. Horton has higher revenue and earnings than PulteGroup. PulteGroup is trading at a lower price-to-earnings ratio than D.R. Horton, indicating that it is currently the more affordable of the two stocks.
89.9% of PulteGroup shares are held by institutional investors. Comparatively, 90.6% of D.R. Horton shares are held by institutional investors. 0.8% of PulteGroup shares are held by company insiders. Comparatively, 1.7% of D.R. Horton shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
In the previous week, PulteGroup had 14 more articles in the media than D.R. Horton. MarketBeat recorded 22 mentions for PulteGroup and 8 mentions for D.R. Horton. PulteGroup's average media sentiment score of 1.17 beat D.R. Horton's score of 1.03 indicating that D.R. Horton is being referred to more favorably in the news media.
PulteGroup received 15 more outperform votes than D.R. Horton when rated by MarketBeat users. Likewise, 60.85% of users gave PulteGroup an outperform vote while only 60.07% of users gave D.R. Horton an outperform vote.
PulteGroup presently has a consensus price target of $111.73, suggesting a potential downside of 5.84%. D.R. Horton has a consensus price target of $158.41, suggesting a potential upside of 4.93%. Given PulteGroup's higher probable upside, analysts clearly believe D.R. Horton is more favorable than PulteGroup.
PulteGroup has a net margin of 16.63% compared to PulteGroup's net margin of 13.39%. D.R. Horton's return on equity of 25.81% beat PulteGroup's return on equity.
PulteGroup has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, D.R. Horton has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.
Summary
D.R. Horton beats PulteGroup on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DHI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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