WMS vs TREX vs NVR vs FBIN vs DHI

For growth investors, Trex Company, Inc.

(TREX) is the stronger pick with 2. 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. 6x trailing P/E (13. 7x 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. 6x versus Advanced Drainage Systems, Inc. at 25. 0x. On forward P/E, Fortune Brands Innovations, Inc. is actually cheaper at 11. 5x — notably different from the trailing picture, reflecting expected earnings growth. 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. 09x versus Trex Company, Inc. 's 7. 16x — a reasonable growth-adjusted valuation.

Over the past 5 years, D.

R. Horton, Inc. (DHI) delivered a total return of +46. 7%, compared to -64. 0% for Trex Company, Inc. (TREX). Over 10 years, the gap is even starker: WMS returned +549. 9% versus FBIN's -2. 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 Fortune Brands Innovations, Inc. 's 1. 61β — meaning FBIN is approximately 136% more volatile than NVR relative to the S&P 500. On balance sheet safety, Trex Company, Inc. (TREX) carries a lower debt/equity ratio of 22% versus 107% for Fortune Brands Innovations, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Trex Company, Inc.

(TREX) is pulling ahead at 2. 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 -34. 1% for Fortune Brands Innovations, Inc.. Over a 3-year CAGR, TREX leads at 2. 0% 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.

Trex Company, Inc.

(TREX) is the more profitable company, earning 16. 2% net margin versus 6. 7% for Fortune Brands Innovations, Inc. — meaning it keeps 16. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WMS leads at 22. 6% versus 11. 6% for FBIN. At the gross margin level — before operating expenses — FBIN leads at 44. 8%, 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. 09x versus Trex Company, Inc. 's 7. 16x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Fortune Brands Innovations, Inc. (FBIN) trades at 11. 5x forward P/E versus 24. 0x for Trex Company, Inc. — 12. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FBIN: 53. 1% to $59. 83.

In this comparison, FBIN (2.

5% yield), DHI (1. 1% yield), WMS (0. 4% yield) pay a dividend. TREX, NVR do 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. 3% 10Y return). Both have compounded well over 10 years (DHI: +424. 3%, TREX: +239. 9%), 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 TREX (Industrials) and NVR (Consumer Cyclical) and FBIN (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; TREX is a small-cap quality compounder stock; NVR is a mid-cap deep-value stock; FBIN is a small-cap deep-value stock; DHI is a mid-cap deep-value stock. FBIN, DHI pay a dividend while WMS, TREX, NVR do 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.