Verdict: Side-by-side breakdown using the Bull Rankings model. DHI scored 39.3, KBH scored 29.3 — DHI leads.
Compare another set
DHI
D.R. Horton, Inc.
Residential Construction · Quality-Growth
39.3
$134.88 · $37.7B
fundamentals as of
Score gap
10.0
DHI leads
KBH
KB Home
Residential Construction · Quality-Growth
29.3
$43.13 · $2.6B
fundamentals as of
At a glance · who leads each dimension, on the model's own rules
CheapestKBH12.1x
Fastest growthDHI-6.9%
Strongest balance sheetDHI0.29
Highest qualityDHI78 / 100
Largest discount to fair valueKBH-24%
Side by side · every name on one set of axes
Growth against the P/E multiple. Up and to the right is cheaper and faster — the quality-growth idea in one picture. Points beyond the axis are pinned to the edge and marked off-scale rather than allowed to compress everything else.
The model, pillar by pillar (0–100 each)
DHI
stronger →← stronger
KBH
78
Qualityreturns · margins · balance sheet
60
25
Growthrevenue & earnings expansion
13
31
Valuevaluation vs sector peers
33
DHI is stronger on 2 of 3 pillars.
Fundamentals, head-to-head
DHI
KBH
$3.2bB
FCF
$360mC
-6.9%D
Rev
-10.0%D
0.29A-
D/E
0.55B+
12.9xA-
P/E
12.1xA-
Winner per row is the stronger grade; where grades tie, the better figure breaks it. A true tie or a missing value shows no highlight.
Valuation · DCF cross-check
DHI
KBH
11% above
Price vs fair valuelower is cheaper
24% below
~4%/yr
Growth the price impliesyr-1 FCF growth, fading to 4% · lower = less priced in
~-8%/yr
-5%
1-yr DCF upside
+47%
-10%
5-yr DCF upside
+31%
-16%
10-yr DCF upside
+13%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
DHI
Why this score
Buying back stock
Raising its dividend
Durable high returns
KBH
Why this score
Buying back stock
The companies
DHID.R. Horton, Inc.
Residential Construction · $134.88 · beta 1.35
Why now
Residential Construction · market cap $37.7b. Down 21% from 52-week high of $170.79 — deep drawdown territory. Revenue -7% — in contraction; any catalyst that reverses this triggers re-rating. 14 sell-side analysts rate this a Hold with a mean 1-yr target of $155.00 (implying +15% upside).
Moat
ROE 13% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 105% of net income — earnings translate cleanly into cash.
Risk
Revenue contracting -7% — the operational turn is not yet visible in the top line.
KBHKB Home
Residential Construction · $43.13 · beta 1.34
Why now
Residential Construction · market cap $2.6b. Down 36% from 52-week high of $67.57 — deep drawdown territory. Revenue -10% — in contraction; any catalyst that reverses this triggers re-rating. 14 sell-side analysts rate this a Hold with a mean 1-yr target of $53.07 (implying +23% upside).
Moat
FCF converts 160% of net income — earnings translate cleanly into cash.
Risk
Revenue contracting -10% — the operational turn is not yet visible in the top line. Down 36% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Net margin 4.4% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Where DHI and KBH diverge
On the headline score the gap is 10.0 points in favor of DHI. The widest single difference is Quality, where DHI leads by 17.4 points.
QualityDHI 77.5 · KBH 60.1DHI +17.4
GrowthDHI 24.9 · KBH 12.7DHI +12.2
ValueDHI 31.4 · KBH 32.9level
Pillars run 0–100. Value is judged against each company's own sector, so a Value score is a statement about a company relative to its own industry rather than to the other name here. A wide Value gap usually means the market already prices the difference in quality or growth — which is the trade-off this comparison comes down to.
Common questions
Is DHI or KBH the better stock?
DHI scores higher: DHI 39.3, KBH 29.3 out of 100 on the Bull Rankings quality-growth score, which blends business quality, growth and valuation into one number. A higher score means a stronger business at a more reasonable price — it is not a price target or a recommendation.
Where do DHI and KBH differ most?
The widest gap is quality, where DHI leads by 17 points on the 0–100 pillar scale. DHI also leads growth, while value is effectively level between them.
How are DHI and KBH scored?
Each carries the same 0–100 quality-growth score used everywhere on the site, built from three pillars — quality (profitability and returns on capital), growth (revenue and earnings), and value (what you pay for them) — combined as a geometric mean, so a weak pillar cannot be papered over by a strong one.
How current is this comparison?
The whole universe is re-scored every trading day after the US market close, so the scores and fundamentals here reflect the latest published edition.