WMS vs DHI

For growth investors, Advanced Drainage Systems, Inc.

(WMS) is the stronger pick with 1. 0% 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 Advanced Drainage Systems, Inc. (WMS) a "Hold" — based on 22 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 Advanced Drainage Systems, Inc. at 25. 8x. On forward P/E, D. R. Horton, Inc. is actually cheaper at 14. 0x.

Over the past 5 years, D.

R. Horton, Inc. (DHI) delivered a total return of +52. 9%, compared to +39. 2% for Advanced Drainage Systems, Inc. (WMS). Over 10 years, the gap is even starker: WMS returned +567. 5% 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 Advanced Drainage Systems, Inc. 's 1. 32β — meaning WMS is approximately 57% 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 88% for Advanced Drainage Systems, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Advanced Drainage Systems, Inc.

(WMS) is pulling ahead at 1. 0% versus -6. 9% for D. R. Horton, Inc. (DHI). On earnings-per-share growth, the picture is similar: Advanced Drainage Systems, Inc. grew EPS -10. 7% year-over-year, compared to -19. 3% for D. R. Horton, Inc.. Over a 3-year CAGR, WMS leads at 1. 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.

Advanced Drainage Systems, Inc.

(WMS) is the more profitable company, earning 15. 5% net margin versus 10. 5% for D. R. Horton, Inc. — meaning it keeps 15. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WMS leads at 22. 6% versus 12. 9% for DHI. At the gross margin level — before operating expenses — WMS leads at 37. 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.

On forward earnings alone, D.

R. Horton, Inc. (DHI) trades at 14. 0x forward P/E versus 24. 5x for Advanced Drainage Systems, Inc. — 10. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WMS: 36. 3% to $202. 67.

All stocks in this comparison pay dividends.

D. R. Horton, Inc. (DHI) offers the highest yield at 1. 1%, versus 0. 4% for Advanced Drainage Systems, Inc. (WMS).

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%, WMS: +567. 5%), 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 (WMS (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: WMS is a mid-cap quality compounder stock; DHI is a mid-cap deep-value stock. DHI pays a dividend while WMS 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.