Advertisement
DHI vs KBH
Which Stock Would AI Choose? D.R. Horton (DHI) vs. KB Home (KBH) Stock Comparison
Key Takeaways
- DHI (D.R. Horton) is the largest U.S. homebuilder by volume, with a national scale and affordability-focused product mix that support relative resilience in a high mortgage-rate environment.
- KBH (KB Home) has faced steeper earnings declines and more pronounced gross-margin compression, though its return to a built-to-order model is gradually improving its backlog and margin trajectory.
- Over recent quarters, DHI has shown firmer order momentum and superior profitability, while KBH has contended with larger year-over-year revenue and earnings contractions.
- Tickeron AI Verdict: DHI is the preferred ticker of the two, based on more consistent trend structure, greater scale, and stronger relative market positioning.
- For deeper context, explore DHI Major News and DHI Today's Price Move, as well as KBH Major News and KBH Today's Price Move.
- To see how AI trading systems are navigating this market, explore Trending AI Robots.
Introduction
D.R. Horton and KB Home are two of the most recognized names in U.S. residential construction, yet they occupy different positions within the homebuilding industry. D.R. Horton is the country's largest builder by closings, operating across 126 markets in 36 states with a strong focus on entry-level and affordable homes. KB Home, headquartered in Los Angeles, operates across 49 markets and emphasizes a personalized, built-to-order model. This stock comparison is relevant for investors and traders evaluating relative performance, market positioning, and how each company is managing the current period of elevated mortgage rates and constrained affordability. The contrast in scale, strategy, and recent momentum makes the two a useful paired case study.
DHI Overview and Recent Performance
D.R. Horton (DHI) remains the dominant force in American homebuilding, with a national footprint and an average selling price roughly 25% to 30% below the broader new-home market. This affordability positioning has helped sustain buyer demand even as mortgage rates have stayed elevated. In recent market activity, the company reported fiscal fourth-quarter results that reflected a softer housing environment, with revenue and net income declining year over year, while still generating solid consolidated pre-tax income and continuing meaningful share repurchases and dividend growth. D.R. Horton recently raised its quarterly dividend by about 11%, signaling confidence in its cash generation. Analysts have trimmed price targets in response to margin and demand pressures, but the stock's consensus rating remains a Hold, with scale, liquidity, and controlled lot supply cited as key stabilizing factors.
KBH Overview and Recent Performance
KB Home (KBH) has experienced a more pronounced slowdown than its larger rival, reflecting a combination of pricing pressure, higher relative land costs, and reduced operating leverage. In recent quarters, the company reported double-digit declines in revenues, deliveries, and earnings per share, and its housing gross margin contracted meaningfully from prior-year levels. A strategic pivot back to its core built-to-order model has been a central theme, and that shift is showing early signs of traction: the built-to-order share of deliveries has climbed sharply, and the company's backlog grew year over year for the first time in four years during its most recent quarter. Nevertheless, sell-side sentiment has turned more cautious, with some firms issuing Sell or lower-target ratings amid expectations that fiscal-year earnings will decline substantially before a recovery takes hold.
Trending AI Robots
Tickeron maintains a roster of hundreds of AI trading bots that collectively monitor and trade thousands of different tickers across varied strategies and timeframes. Because not every bot is suited to every market regime, only a curated selection of the most effective performers earns a place in the Trending AI Robots section. These bots differ in trading style, strategy, holding period, performance history, and the specific set of tickers they trade, allowing users to match a system to their own objectives. The curated list is intended to highlight bots whose current results align with prevailing market conditions. Traders and investors interested in an automated, data-driven approach to stock selection may find it worthwhile to review the available robots and their recent statistics.
Head-to-Head Comparison
The most fundamental contrast between these two builders is scale and product strategy. DHI leverages national diversification, an asset-light land strategy, and a heavy concentration in entry-level homes to sustain order flow and defend margins. KBH pursues a more specialized, buyer-personalized model that commands higher average selling prices but has proven more sensitive to affordability headwinds and slower sales velocity in the current cycle. On growth drivers, D.R. Horton's order momentum and market-share gains stand out, while KB Home's recovery depends on the continued success of its built-to-order transition. Risk profiles also differ: D.R. Horton's broad footprint and stronger liquidity reduce concentration risk, whereas KB Home carries a higher debt-to-capital ratio and faces greater earnings volatility. In terms of market sentiment, analyst consensus is neutral on both, but DHI retains more constructive ratings, while KBH has attracted a notably more cautious stance, including Sell-rated views.
Tickeron AI Verdict
Based on observable factors such as trend consistency, relative profitability, scale, and the stability of order momentum, Tickeron's AI would currently favor DHI over KBH. D.R. Horton's affordability-driven demand, national diversification, and comparatively resilient margins suggest a steadier trend profile, while KB Home's larger earnings contraction and thinner margins indicate a less stable near-term trajectory. This assessment reflects relative positioning rather than an absolute prediction: conditions in the housing market could shift either company's outlook. The verdict is best understood as a probabilistic read on which stock currently exhibits the stronger, more consistent setup.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is DHI is a Buy and KBH is a StrongBuy.
DHI in upward trend: price rose above 50-day moving average on October 22, 2026
DHI moved above its 50-day moving average on October 22, 2026 date and that indicates a change from a downward trend to an upward trend. In 34 of 43 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 79%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 10-day moving average for DHI crossed bullishly above the 50-day moving average on October 27, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 69%.
Following a +8.54% 3-day Advance, the price is estimated to grow further. Considering data from situations where DHI advanced for three days, in 192 of 300 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.
The Aroon Indicator entered an Uptrend today. In 157 of 233 cases where DHI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 67%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DHI as a result. In 58 of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 67%.
The Moving Average Convergence Divergence Histogram (MACD) for DHI turned negative on November 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In 30 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 59%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DHI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 63%.
DHI broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 25 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. DHI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 53 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 62 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 78 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.788) is normal, around the industry mean (1.910). P/E Ratio (14.475) is within average values for comparable stocks, (10.592). Projected Growth (PEG Ratio) (1.171) is also within normal values, averaging (1.217). Dividend Yield (0.013) settles around the average of (0.019) among similar stocks. P/S Ratio (1.205) is also within normal values, averaging (24.205).
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
KBH in upward trend: price rose above 50-day moving average on November 02, 2026
KBH moved above its 50-day moving average on November 02, 2026 date and that indicates a change from a downward trend to an upward trend. In 26 of 35 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 74%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 22, 2026. You may want to consider a long position or call options on KBH as a result. In 59 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 66%.
The Moving Average Convergence Divergence (MACD) for KBH just turned positive on October 16, 2026. Looking at past instances where KBH's MACD turned positive, the stock continued to rise in 37 of 50 cases over the following month. The odds of a continued upward trend are 74%.
The 10-day moving average for KBH crossed bullishly above the 50-day moving average on November 04, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 62%.
Following a +6.30% 3-day Advance, the price is estimated to grow further. Considering data from situations where KBH advanced for three days, in 207 of 305 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
The Aroon Indicator entered an Uptrend today. In 173 of 233 cases where KBH Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 74%.
Bearish Trend Analysis
The 10-day RSI Indicator for KBH moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In 23 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 64%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 39 of 58 cases where KBH's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 67%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KBH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 68%.
KBH broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 12 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. KBH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.812) is normal, around the industry mean (1.910). P/E Ratio (12.071) is within average values for comparable stocks, (10.592). Projected Growth (PEG Ratio) (0.280) is also within normal values, averaging (1.217). Dividend Yield (0.020) settles around the average of (0.019) among similar stocks. P/S Ratio (0.573) is also within normal values, averaging (24.205).
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 79 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 80 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KBH’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock worse than average.
DHI | KBH | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 74 | 22 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 78 Overvalued | 50 Fair valued | |
PROFIT vs RISK RATING 1..100 | 53 | 80 | |
SMR RATING 1..100 | 62 | 79 | |
PRICE GROWTH RATING 1..100 | 47 | 47 | |
P/E GROWTH RATING 1..100 | 25 | 12 | |
SEASONALITY SCORE 1..100 | 85 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
KBH's Valuation (50) in the Homebuilding industry is in the same range as DHI (78). This means that KBH’s stock grew similarly to DHI’s over the last 12 months.
DHI's Profit vs Risk Rating (53) in the Homebuilding industry is in the same range as KBH (80). This means that DHI’s stock grew similarly to KBH’s over the last 12 months.
DHI's SMR Rating (62) in the Homebuilding industry is in the same range as KBH (79). This means that DHI’s stock grew similarly to KBH’s over the last 12 months.
DHI's Price Growth Rating (47) in the Homebuilding industry is in the same range as KBH (47). This means that DHI’s stock grew similarly to KBH’s over the last 12 months.
KBH's P/E Growth Rating (12) in the Homebuilding industry is in the same range as DHI (25). This means that KBH’s stock grew similarly to DHI’s over the last 12 months.
| DHI | KBH | |
|---|---|---|
| RSI ODDS (%) | N/A | 2 days ago 64% |
| Stochastic ODDS (%) | 2 days ago 68% | 2 days ago 67% |
| Momentum ODDS (%) | 2 days ago 67% | 2 days ago 66% |
| MACD ODDS (%) | 2 days ago 59% | 2 days ago 74% |
| TrendWeek ODDS (%) | 2 days ago 68% | 2 days ago 71% |
| TrendMonth ODDS (%) | 2 days ago 66% | 2 days ago 67% |
| Advances ODDS (%) | 9 days ago 64% | 12 days ago 68% |
| Declines ODDS (%) | 2 days ago 63% | 2 days ago 68% |
| BollingerBands ODDS (%) | 2 days ago 60% | 2 days ago 70% |
| Aroon ODDS (%) | 2 days ago 67% | 2 days ago 74% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
DHI’s FA Score shows that 1 FA rating(s) are green while KBH’s FA Score has 1 green FA rating(s).
- DHI’s FA Score: 1 green, 4 red.
- KBH’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
DHI’s TA Score shows that 5 TA indicator(s) are bullish while KBH’s TA Score has 6 bullish TA indicator(s).
- DHI’s TA Score: 5 bullish, 4 bearish.
- KBH’s TA Score: 6 bullish, 4 bearish.
Price Growth
DHI (@Homebuilding) experienced а -8.05% price change this week, while KBH (@Homebuilding) price change was -6.51% for the same time period.
The average weekly price growth across all stocks in the @Homebuilding industry was -3.55%. For the same industry, the average monthly price growth was +7.43%, and the average quarterly price growth was +8.79%.
Reported Earning Dates
DHI is expected to report earnings on Jan 26, 2027.
KBH is expected to report earnings on Dec 17, 2026.
Industries' Descriptions
@Homebuilding (-3.55% weekly)Homebuilding includes companies residential home construction companies, renovators and repair firms. The companies may be building single-family or multifamily homes, condominiums or mobile homes. Over the five years to 2019, the Home Builders industry is estimated to have grown at an annualized rate of 2.5% to reach $89.4 billion, (including expected growth of 2.6% in 2019), according to a study by IbisWorld. After having suffered one of its worst crises a decade ago during the last macroeconomic recession–which had much of its origins in U.S. real estate – the homebuilding industry has been recovering steadily so far. Higher disposable incomes and improving economic activity have bolstered consumers’ purchases of homes. While revenue of the Home Builders industry remains well below its prerecession high, demand growth estimates show promise.
Advertisement
DHI and
Correlation & Price change
A.I.dvisor indicates that over the last year, DHI has been closely correlated with PHM. These tickers have moved in lockstep 93% of the time. This A.I.-generated data suggests there is a high statistical probability that if DHI jumps, then PHM could also see price increases.
KBH and
Correlation & Price change
A.I.dvisor indicates that over the last year, KBH has been closely correlated with MTH. These tickers have moved in lockstep 90% of the time. This A.I.-generated data suggests there is a high statistical probability that if KBH jumps, then MTH could also see price increases.