Advertisement
DHI vs TMHC
Which Stock Would AI Choose? D.R. Horton (DHI) vs. Taylor Morrison Home Corporation (TMHC) Stock Comparison
Key Takeaways
- DHI, the largest U.S. homebuilder by volume, boasts a market cap of approximately $44.6 billion, dwarfing TMHC's $6 billion, providing greater scale and stability.
- DHI shows stronger recent momentum, with YTD returns of 6.77% and 1-year gains near 28%, compared to TMHC's 5.10% YTD and 9.6% annually.
- Both stocks face homebuilding headwinds like declining mortgage rates aiding sentiment, but DHI's trailing P/E (price-to-earnings ratio) of 13.95 exceeds TMHC's 7.96, signaling TMHC's relative undervaluation.
- Quarterly revenue growth lags for both (-9.5% for DHI, -10.9% for TMHC), reflecting sector slowdowns, yet DHI's ROE (return on equity) edges TMHC at 13.48% versus 12.99%.
- TMHC exhibits higher beta (1.58 vs. DHI's 1.45), indicating greater volatility amid interest rate fluctuations.
Introduction
In the competitive residential construction sector, DHI and TMHC stand out as key players navigating housing demand amid fluctuating interest rates and affordability challenges. This stock comparison analyzes their business models, recent market performance, and relative positioning, aiding value investors seeking stability and growth traders eyeing momentum. With homebuilder sentiment improving on potential rate cuts, understanding these dynamics helps assess opportunities in a sector poised for shifts driven by economic policy and buyer confidence.
DHI Overview and Recent Performance
DHI (D.R. Horton, Inc.) is America's largest homebuilder by closings, focusing on entry-level and move-up single-family homes across diverse U.S. markets. In recent market activity, shares traded around $153, with a 52-week range of $114 to $185. Recent weeks saw gains amid broader homebuilder rallies, fueled by declining 30-year mortgage rates nearing lows since 2022 and optimism over federal housing initiatives. Q1 FY2026 results showed revenue of $7.56 billion missing estimates, yet EPS beat expectations, prompting a post-earnings uptick as investors weighed lowered full-year guidance against rate-cut hopes. Sentiment reflects resilience from DHI's scale and efficiency, despite sector-wide residential investment declines.
TMHC Overview and Recent Performance
TMHC (Taylor Morrison Home Corporation) designs and builds single-family detached and attached homes, emphasizing lifestyle communities in premium locations. Shares hovered near $62 recently, within a 52-week span of $55 to $73. In recent weeks, performance remained stable but trailed peers, influenced by softening demand and high rates, though Q4 FY2025 delivered adjusted EPS of $1.91. With Q1 2026 earnings upcoming, focus centers on sales trends amid a housing slump where new homes compete with resales. Positive factors include strong cash positions and operating margins around 12%, supporting navigation of affordability pressures through targeted pricing strategies.
Trending AI Robots
Tickeron's Trending AI Robots page curates top-performing AI trading bots from hundreds available, each deploying machine learning for signals across thousands of tickers in stocks, ETFs, and crypto. These bots vary in style—from swing trading dips to semiconductor momentum—with real-time strategies suited to current volatility and trends. Featured bots boast annualized returns ranging 30% to over 120%, win rates of 55-87%, profit factors up to 11.7, and profit-to-drawdown ratios exceeding 10 in leaders like LRCX/SOXS agents. While none spotlight homebuilders explicitly, their diverse timeframes (minutes to weeks) and stats highlight adaptability. Traders may explore this section to identify bots aligning with market conditions and personal risk profiles.
Head-to-Head Comparison
Both DHI and TMHC operate in homebuilding, exposed to interest-sensitive demand, but DHI's volume leadership contrasts TMHC's upscale focus, offering trade-offs in growth drivers: DHI captures entry-level buyers amid shortages, while TMHC targets higher-margin communities. Recent momentum favors DHI's outperformance, with shares lapping the market versus TMHC's modest gains. Risk profiles differ—TMHC's higher beta and debt-to-equity (37% vs. 23%) amplify volatility, though its lower P/E suggests value appeal. Sector headwinds like declining quarterly revenues hit both similarly, yet DHI's superior ROA (7.82% vs. 7.60%) and market sentiment underscore scale advantages in consolidating markets.
Tickeron AI Verdict
Tickeron's AI currently leans toward DHI with higher probability for near-term outperformance, citing consistent trends, larger scale buffering sector risks, and stronger relative momentum amid rate relief signals. TMHC offers valuation upside but trails in stability and catalysts. Observable factors like YTD gains and efficiency position DHI favorably in probabilistic models.
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. 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 Hold and TMHC is a Hold.
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 2 FA rating(s) are green whileTMHC’s FA Score has 2 green FA rating(s).
- DHI’s FA Score: 2 green, 3 red.
- TMHC’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 6 TA indicator(s) are bullish while TMHC’s TA Score has 8 bullish TA indicator(s).
- DHI’s TA Score: 6 bullish, 3 bearish.
- TMHC’s TA Score: 8 bullish, 3 bearish.
Price Growth
DHI (@Homebuilding) experienced а +2.19% price change this week, while TMHC (@Homebuilding) price change was -0.46% for the same time period.
The average weekly price growth across all stocks in the @Homebuilding industry was +0.24%. For the same industry, the average monthly price growth was +19.66%, and the average quarterly price growth was +6.39%.
Reported Earning Dates
DHI is expected to report earnings on Jul 21, 2026.
TMHC is expected to report earnings on Jul 29, 2026.
Industries' Descriptions
@Homebuilding (+0.24% 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 | TMHC | DHI / TMHC | |
| Capitalization | 44.8B | 6.59B | 680% |
| EBITDA | 4.03B | 1.03B | 390% |
| Gain YTD | 10.212 | 21.590 | 47% |
| P/E Ratio | 14.82 | 10.67 | 139% |
| Revenue | 33.3B | 7.61B | 437% |
| Total Cash | 1.92B | 653M | 294% |
| Total Debt | 6.63B | 2.42B | 275% |
DHI | TMHC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 26 | 70 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 64 Fair valued | 44 Fair valued | |
PROFIT vs RISK RATING 1..100 | 52 | 22 | |
SMR RATING 1..100 | 63 | 68 | |
PRICE GROWTH RATING 1..100 | 17 | 40 | |
P/E GROWTH RATING 1..100 | 16 | 17 | |
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.
TMHC's Valuation (44) in the Homebuilding industry is in the same range as DHI (64). This means that TMHC’s stock grew similarly to DHI’s over the last 12 months.
TMHC's Profit vs Risk Rating (22) in the Homebuilding industry is in the same range as DHI (52). This means that TMHC’s stock grew similarly to DHI’s over the last 12 months.
DHI's SMR Rating (63) in the Homebuilding industry is in the same range as TMHC (68). This means that DHI’s stock grew similarly to TMHC’s over the last 12 months.
DHI's Price Growth Rating (17) in the Homebuilding industry is in the same range as TMHC (40). This means that DHI’s stock grew similarly to TMHC’s over the last 12 months.
DHI's P/E Growth Rating (16) in the Homebuilding industry is in the same range as TMHC (17). This means that DHI’s stock grew similarly to TMHC’s over the last 12 months.
| DHI | TMHC | |
|---|---|---|
| RSI ODDS (%) | N/A | 3 days ago 62% |
| Stochastic ODDS (%) | 3 days ago 70% | 3 days ago 76% |
| Momentum ODDS (%) | 3 days ago 64% | 3 days ago 69% |
| MACD ODDS (%) | 3 days ago 74% | 3 days ago 71% |
| TrendWeek ODDS (%) | 3 days ago 69% | 3 days ago 62% |
| TrendMonth ODDS (%) | 3 days ago 68% | 3 days ago 71% |
| Advances ODDS (%) | 5 days ago 66% | 25 days ago 72% |
| Declines ODDS (%) | 13 days ago 63% | 3 days ago 62% |
| BollingerBands ODDS (%) | 3 days ago 57% | 3 days ago 63% |
| Aroon ODDS (%) | 3 days ago 69% | 3 days ago 78% |
Advertisement