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DHI vs. NVR: Which Stock Is the Better Value Option?
ZACKSยท2025-10-01 16:41

Core Insights - D.R. Horton (DHI) and NVR are two prominent stocks in the Building Products - Home Builders sector, with DHI currently offering better value for investors compared to NVR [1] Valuation Metrics - DHI has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook than NVR, which has a Zacks Rank of 4 (Sell) [3] - DHI's forward P/E ratio is 14.37, significantly lower than NVR's forward P/E of 19.22, suggesting DHI may be undervalued [5] - The PEG ratio for DHI is 3.59, while NVR's PEG ratio is much higher at 11.17, indicating DHI's earnings growth is more favorably priced [5] - DHI's P/B ratio stands at 2.05, compared to NVR's P/B of 6.11, further supporting DHI's valuation advantage [6] - DHI has a Value grade of B, while NVR has a Value grade of C, reinforcing the perception that DHI is the more attractive investment option [6]