DHI vs NVR

For growth investors, NVR, Inc.

(NVR) is the stronger pick with -2. 1% 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. 7x trailing P/E (13. 8x forward), making it the more compelling value choice. Analysts rate NVR, Inc. (NVR) a "Buy" — based on 24 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. 7x versus NVR, Inc. at 13. 8x. On forward P/E, D. R. Horton, Inc. is actually cheaper at 13. 8x. 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. 10x versus NVR, Inc. 's 1. 22x — a reasonable growth-adjusted valuation.

Over the past 5 years, D.

R. Horton, Inc. (DHI) delivered a total return of +49. 9%, compared to +16. 9% for NVR, Inc. (NVR). Over 10 years, the gap is even starker: DHI returned +424. 2% versus NVR's +265. 4%. 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), NVR, Inc.

(NVR) is the lower-risk stock at 0. 68β versus D. R. Horton, Inc. 's 0. 85β — meaning DHI is approximately 24% more volatile than NVR relative to the S&P 500. On balance sheet safety, D. R. Horton, Inc. (DHI) carries a lower debt/equity ratio of 24% versus 31% for NVR, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), NVR, Inc.

(NVR) is pulling ahead at -2. 1% versus -6. 9% for D. R. Horton, Inc. (DHI). On earnings-per-share growth, the picture is similar: NVR, Inc. grew EPS -13. 8% year-over-year, compared to -19. 3% for D. R. Horton, Inc.. Over a 3-year CAGR, DHI leads at 0. 8% 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.

NVR, Inc.

(NVR) is the more profitable company, earning 13. 0% net margin versus 10. 5% for D. R. Horton, Inc. — meaning it keeps 13. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NVR leads at 16. 2% versus 12. 9% for DHI. At the gross margin level — before operating expenses — DHI leads at 23. 7%, 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. 10x versus NVR, Inc. '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 13. 8x forward P/E versus 16. 7x for NVR, Inc. — 2. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NVR: 24. 1% to $7465. 33.

In this comparison, DHI (1.

1% yield) pays a dividend. NVR 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, +424. 2% 10Y return). Both have compounded well over 10 years (DHI: +424. 2%, NVR: +265. 4%), 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.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

DHI pays a dividend while NVR 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.