PHM vs. DHI, LEN, NVR, TOL, MTH, KBH, TPH, MHO, CVCO, and HOV
Should you be buying PulteGroup stock or one of its competitors? The main competitors of PulteGroup include D.R. Horton (DHI), Lennar (LEN), NVR (NVR), Toll Brothers (TOL), Meritage Homes (MTH), KB Home (KBH), Tri Pointe Homes (TPH), M/I Homes (MHO), Cavco Industries (CVCO), and Hovnanian Enterprises (HOV). These companies are all part of the "homebuilding" industry.
D.R. Horton (NYSE:DHI) and PulteGroup (NYSE:PHM) are both large-cap construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, media sentiment, risk, valuation, community ranking and earnings.
D.R. Horton has higher revenue and earnings than PulteGroup. PulteGroup is trading at a lower price-to-earnings ratio than D.R. Horton, indicating that it is currently the more affordable of the two stocks.
D.R. Horton has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, PulteGroup has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.
D.R. Horton currently has a consensus target price of $158.31, suggesting a potential upside of 11.31%. PulteGroup has a consensus target price of $113.07, suggesting a potential downside of 0.34%. Given PulteGroup's higher possible upside, analysts clearly believe D.R. Horton is more favorable than PulteGroup.
In the previous week, D.R. Horton and D.R. Horton both had 8 articles in the media. PulteGroup's average media sentiment score of 1.55 beat D.R. Horton's score of 1.21 indicating that D.R. Horton is being referred to more favorably in the media.
90.6% of D.R. Horton shares are held by institutional investors. Comparatively, 89.9% of PulteGroup shares are held by institutional investors. 1.7% of D.R. Horton shares are held by company insiders. Comparatively, 0.8% of PulteGroup shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
PulteGroup has a net margin of 16.63% compared to PulteGroup's net margin of 13.39%. D.R. Horton's return on equity of 25.81% beat PulteGroup's return on equity.
D.R. Horton pays an annual dividend of $1.20 per share and has a dividend yield of 0.8%. PulteGroup pays an annual dividend of $0.80 per share and has a dividend yield of 0.7%. D.R. Horton pays out 8.2% of its earnings in the form of a dividend. PulteGroup pays out 6.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. D.R. Horton has raised its dividend for 9 consecutive years and PulteGroup has raised its dividend for 6 consecutive years. D.R. Horton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
PulteGroup received 14 more outperform votes than D.R. Horton when rated by MarketBeat users. Likewise, 60.80% of users gave PulteGroup an outperform vote while only 60.06% of users gave D.R. Horton an outperform vote.
Summary
D.R. Horton beats PulteGroup on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding PHM and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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