Advertisement
DHI vs MTH
Which Stock Would AI Choose? D.R. Horton (DHI) vs. Meritage Homes (MTH) Stock Comparison
Key Takeaways
- DHI holds a dominant market position with a $44 billion market capitalization, dwarfing MTH's $4.6 billion, offering greater scale in the homebuilding sector.
- Both stocks have exhibited upward momentum in recent market sessions amid anticipation of interest rate relief, with DHI up over 6% year-to-date (YTD) and MTH showing sharp intraday gains.
- DHI demonstrates superior profitability with a return on equity (ROE) of 13.48% compared to MTH's 8.77%.
- MTH trades at a more attractive trailing price-to-earnings (P/E) ratio of 10.93 versus DHI's 13.95, appealing to value-oriented investors.
- Recent quarterly revenue growth has softened for both due to elevated mortgage rates, but housing shortages provide long-term tailwinds.
- Analyst price targets suggest modest upside for DHI (average $155) and stronger potential for MTH (average $82).
Introduction
DHI and MTH, two prominent players in the U.S. homebuilding industry, offer investors exposure to the residential construction market amid ongoing affordability challenges and persistent housing shortages. This stock comparison analyzes their business models, recent performance, and relative positioning, helping traders assess momentum plays and long-term investors evaluate sector recovery potential. With mortgage rates influencing demand and builder sentiment, understanding these companies' scale, financial health, and market reactions provides key insights for portfolio decisions in a volatile economic environment.
DHI Overview and Recent Performance
D.R. Horton, America's largest homebuilder by volume, specializes in entry-level and move-up single-family homes across more than 100 markets nationwide. The company benefits from a vertically integrated model, including land development and mortgage services. In recent market activity, DHI shares have climbed, with a year-to-date gain of 6.77% and trading near $153, within a 52-week range of $114 to $185. Recent quarterly results highlighted resilience, reporting solid net income despite year-over-year revenue declines amid softer demand from elevated interest rates. Sentiment has improved on hopes for Federal Reserve rate cuts, boosting stock momentum, though analysts recently adjusted targets downward citing housing weakness. Key metrics include a trailing P/E of 13.95 and ROE of 13.48%, reflecting efficient capital use.
MTH Overview and Recent Performance
Meritage Homes operates as a mid-sized homebuilder focused on energy-efficient single-family homes in high-growth Sunbelt regions like Texas, Florida, and Arizona. Its strategy emphasizes quick-turn inventory and customer personalization. Over recent weeks, MTH shares have surged, posting intraday gains of over 5% and trading around $69, within a 52-week range of $58 to $85. The stock anticipates first-quarter 2026 earnings disclosure soon, following prior periods of revenue contraction due to affordability pressures. Elevated mortgage costs have tempered orders, but improving backlog conversion supports cautious optimism. Financials show a trailing P/E of 10.93 and ROE of 8.77%, with higher debt-to-equity at 36% versus peers.
Trending AI Robots
Tickeron's Trending AI Robots page curates 25 top-performing AI trading bots from a library of 351, tailored for copy trading across stocks, ETFs, and crypto in today's volatile markets. These bots employ diverse strategies like trend following, volatility exploitation, and sector rotation, with annualized returns ranging from 15% to 168%, win rates of 54% to 88%, and profit factors up to 11.7. For instance, semiconductor-focused agents boast over 97% returns, while leveraged ETF bots achieve 88% win rates on short timeframes like 1-10 days. Ideal for current conditions, they target high-momentum areas such as semis, industrials, and small caps. Explore these bots to enhance your trading edge with data-driven signals.
Head-to-Head Comparison
Both DHI and MTH build single-family homes in growth markets, but DHI's massive scale enables cost efficiencies and broader geographic diversification, while MTH prioritizes energy-efficient designs for niche appeal. Growth drivers include chronic undersupply, though high rates crimp affordability, leading to similar revenue dips. Recent momentum favors both amid rate cut speculation, yet DHI shows steadier trends. Risk profiles differ: DHI's lower debt-to-equity (23%) enhances stability versus MTH's 36%, exposing the latter more to rate volatility. Market sentiment tilts toward DHI for reliability, while MTH offers value via cheaper valuation multiples.
Tickeron AI Verdict
Tickeron's AI currently favors DHI with higher probability in the near term, driven by its superior scale, stronger ROE, lower leverage, and consistent upward trend amid sector rotation toward established leaders. While MTH presents value opportunities, DHI's positioning aligns better with potential housing catalysts like rate easing.
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 Disclaimers and Limitations.
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 StrongBuy and MTH is a StrongBuy.
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 undervalued. 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 whileMTH’s FA Score has 2 green FA rating(s).
- DHI’s FA Score: 1 green, 4 red.
- MTH’s FA Score: 2 green, 3 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 MTH’s TA Score has 5 bullish TA indicator(s).
- DHI’s TA Score: 5 bullish, 4 bearish.
- MTH’s TA Score: 5 bullish, 5 bearish.
Price Growth
DHI (@Homebuilding) experienced а +5.48% price change this week, while MTH (@Homebuilding) price change was +7.92% for the same time period.
The average weekly price growth across all stocks in the @Homebuilding industry was +3.97%. For the same industry, the average monthly price growth was +15.78%, and the average quarterly price growth was +1.30%.
Reported Earning Dates
DHI is expected to report earnings on Jul 21, 2026.
MTH is expected to report earnings on Jul 29, 2026.
Industries' Descriptions
@Homebuilding (+3.97% 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.
| DHI | MTH | DHI / MTH | |
| Capitalization | 43.8B | 4.91B | 892% |
| EBITDA | 4.03B | 522M | 772% |
| Gain YTD | 7.852 | 12.682 | 62% |
| P/E Ratio | 14.50 | 13.43 | 108% |
| Revenue | 33.3B | 5.62B | 593% |
| Total Cash | 1.92B | 767M | 250% |
| Total Debt | 6.63B | 1.9B | 349% |
DHI | MTH | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 13 | 23 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 62 Fair valued | 7 Undervalued | |
PROFIT vs RISK RATING 1..100 | 55 | 70 | |
SMR RATING 1..100 | 63 | 80 | |
PRICE GROWTH RATING 1..100 | 50 | 46 | |
P/E GROWTH RATING 1..100 | 18 | 11 | |
SEASONALITY SCORE 1..100 | 90 | 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.
MTH's Valuation (7) in the Homebuilding industry is somewhat better than the same rating for DHI (62). This means that MTH’s stock grew somewhat faster than DHI’s over the last 12 months.
DHI's Profit vs Risk Rating (55) in the Homebuilding industry is in the same range as MTH (70). This means that DHI’s stock grew similarly to MTH’s over the last 12 months.
DHI's SMR Rating (63) in the Homebuilding industry is in the same range as MTH (80). This means that DHI’s stock grew similarly to MTH’s over the last 12 months.
MTH's Price Growth Rating (46) in the Homebuilding industry is in the same range as DHI (50). This means that MTH’s stock grew similarly to DHI’s over the last 12 months.
MTH's P/E Growth Rating (11) in the Homebuilding industry is in the same range as DHI (18). This means that MTH’s stock grew similarly to DHI’s over the last 12 months.
| DHI | MTH | |
|---|---|---|
| RSI ODDS (%) | N/A | 2 days ago 67% |
| Stochastic ODDS (%) | 2 days ago 60% | 2 days ago 69% |
| Momentum ODDS (%) | 2 days ago 70% | 2 days ago 67% |
| MACD ODDS (%) | 2 days ago 68% | 2 days ago 67% |
| TrendWeek ODDS (%) | 2 days ago 69% | 2 days ago 71% |
| TrendMonth ODDS (%) | 2 days ago 68% | 2 days ago 69% |
| Advances ODDS (%) | 17 days ago 66% | 8 days ago 70% |
| Declines ODDS (%) | 5 days ago 63% | 10 days ago 71% |
| BollingerBands ODDS (%) | 2 days ago 60% | 2 days ago 60% |
| Aroon ODDS (%) | 2 days ago 60% | 2 days ago 68% |
Advertisement
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| RSSY | 25.09 | 0.27 | +1.09% |
| Return Stacked U.S. Stocks & Futures Yield ETF | |||
| FIAX | 17.61 | 0.03 | +0.18% |
| Nicholas Fixed Income Alternative ETF | |||
| ESIX | 34.76 | N/A | N/A |
| SPDR S&P SmallCap 600 ESG ETF | |||
| HDV | 27.63 | -0.05 | -0.18% |
| iShares Core High Dividend ETF | |||
| HFRO | 7.03 | -0.03 | -0.42% |
| Highland Opportunities and Income Fund | |||
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 92% 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.
MTH and
Correlation & Price change
A.I.dvisor indicates that over the last year, MTH has been closely correlated with KBH. These tickers have moved in lockstep 89% of the time. This A.I.-generated data suggests there is a high statistical probability that if MTH jumps, then KBH could also see price increases.