COMPARE · Reviewed July 29, 2026
DHI vs MTH
Verdict: Side-by-side breakdown using the Bull Rankings model. DHI scored 54.5, MTH scored 51.2 — DHI leads.
Compare another set
DHI
D.R. Horton, Inc.
54.5
$145.11 · $40.6B
fundamentals as of
Score gap
3.3
DHI leads
MTH
Meritage Homes Corporation
51.2
$70.83 · $4.7B
fundamentals as of
The model, pillar by pillar (0–100 each)
DHI
stronger →← stronger
MTH
77
Qualityreturns · margins · balance sheet
55
50
Growthrevenue & earnings expansion
50
42
Valuevaluation vs sector peers
49
DHI and MTH split the three pillars evenly.
Fundamentals, head-to-head
DHI
MTH
$3.2bB
FCF
$238mC
-3.5%D+
Rev
-8.3%D
0.29A-
D/E
0.37A-
13.8xA-
P/E
12.9xA-
1.21B
PEG
0.54A-
Winner per row is the stronger grade in our model; a tie or a missing value shows no highlight.
Valuation · DCF cross-check
DHI
MTH
10% below
Price vs fair valuelower is cheaper
9% above
~6%/yr
Growth the price implies10-yr FCF · lower = less priced in
~17%/yr
-1%
1-yr DCF upside
-30%
+12%
5-yr DCF upside
-9%
+32%
10-yr DCF upside
+33%
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
- Revenue shrinking
- Short track record
MTH
Why this score
- Buying back stock
- Raising its dividend
- Revenue shrinking
The companies
DHID.R. Horton, Inc.
Why now
Residential Construction · market cap $40.6b. Down 21% from 52-week high of $184.55 — deep drawdown territory. 12 sell-side analysts rate this a Hold with a mean 1-yr target of $164.17 (implying +13% 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, a sign that working capital and capex are well-disciplined.
Risk
Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
MTHMeritage Homes Corporation
Why now
Residential Construction · market cap $4.7b. 17% off the 52-week high of $85.38. Revenue -8% — in contraction; any catalyst that reverses this triggers re-rating. PEG 0.54 — paying under fair value for the growth rate. 8 sell-side analysts rate this a Buy with a mean 1-yr target of $81.63 (implying +15% upside).
Moat
Moat signals from the quantitative card are modest — profitability and capital efficiency are middle-of-pack. The thesis here depends on softer factors (switching costs, brand, distribution, regulatory protection) not captured by the quality-growth screen.
Risk
Revenue contracting -8% — the operational turn is not yet visible in the top line. ROE 8% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
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.