BLD vs DHI

For growth investors, TopBuild Corp.

(BLD) is the stronger pick with 1. 5% revenue growth year-over-year, versus -6. 9% for D. R. Horton, Inc. (DHI). D. R. Horton, Inc. (DHI) offers the better valuation at 12. 9x trailing P/E (14. 0x forward), making it the more compelling value choice. Analysts rate TopBuild Corp. (BLD) a "Buy" — based on 29 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, D.

R. Horton, Inc. (DHI) is the cheapest at 12. 9x versus TopBuild Corp. at 24. 0x. On forward P/E, D. R. Horton, Inc. is actually cheaper at 14. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: D. R. Horton, Inc. wins at 1. 12x versus TopBuild Corp. 's 1. 22x — a reasonable growth-adjusted valuation.

Over the past 5 years, TopBuild Corp.

(BLD) delivered a total return of +96. 8%, compared to +52. 9% for D. R. Horton, Inc. (DHI). Over 10 years, the gap is even starker: BLD returned +1215% versus DHI's +434. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), D.

R. Horton, Inc. (DHI) is the lower-risk stock at 0. 85β versus TopBuild Corp. 's 1. 47β — meaning BLD is approximately 73% more volatile than DHI relative to the S&P 500. On balance sheet safety, D. R. Horton, Inc. (DHI) carries a lower debt/equity ratio of 24% versus 136% for TopBuild Corp. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), TopBuild Corp.

(BLD) is pulling ahead at 1. 5% versus -6. 9% for D. R. Horton, Inc. (DHI). On earnings-per-share growth, the picture is similar: TopBuild Corp. grew EPS -10. 0% year-over-year, compared to -19. 3% for D. R. Horton, Inc.. Over a 3-year CAGR, BLD leads at 2. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

D.

R. Horton, Inc. (DHI) is the more profitable company, earning 10. 5% net margin versus 9. 6% for TopBuild Corp. — meaning it keeps 10. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BLD leads at 14. 6% versus 12. 9% for DHI. At the gross margin level — before operating expenses — BLD leads at 29. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, D. R. Horton, Inc. (DHI) is the more undervalued stock at a PEG of 1. 12x versus TopBuild Corp. 's 1. 22x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, D. R. Horton, Inc. (DHI) trades at 14. 0x forward P/E versus 24. 1x for TopBuild Corp. — 10. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BLD: 22. 5% to $537. 80.

In this comparison, DHI (1.

1% yield) pays a dividend. BLD does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, D.

R. Horton, Inc. (DHI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 85), 1. 1% yield, +434. 6% 10Y return). Both have compounded well over 10 years (DHI: +434. 6%, BLD: +1215%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (BLD (Industrials) and DHI (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: BLD is a mid-cap quality compounder stock; DHI is a mid-cap deep-value stock. DHI pays a dividend while BLD does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.