DHI’s One-Month Rally Offers a Chance to Reevaluate PHM
PulteGroup (PHM) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs D.R. Horton (DHI), suggesting you may be better off investing in PHM
- PHM’s quarterly revenue growth was -4.3%, vs. DHI’s -7.4%.
- In addition, its Last 12 Months revenue growth came in at 5.0%, ahead of DHI’s -7.3%.
- PHM leads on profitability over both periods – LTM margin of 19.9% and 3-year average of 21.0%.
DHI operates as a homebuilder across multiple U.S. regions, constructing single-family and attached homes, while offering mortgage financing, title insurance, and closing services. PHM acquires and develops residential land, constructs housing, controls over 228,000 lots, and provides mortgage financing primarily for homebuyers.
Valuation & Performance Overview
| DHI | PHM | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 10.7 | 7.5 | PHM |
| Revenue Growth | |||
| Last Quarter | -7.4% | -4.3% | PHM |
| Last 12 Months | -7.3% | 5.0% | PHM |
| Last 3 Year Average | 2.9% | 6.6% | PHM |
| Operating Margins | |||
| Last 12 Months | 14.2% | 19.9% | PHM |
| Last 3 Year Average | 16.3% | 21.0% | PHM |
| Momentum | |||
| Last 3 Year Return | 162.9% | 256.1% | PHM |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: DHI Revenue Comparison | PHM Revenue Comparison
See more margin details: DHI Operating Income Comparison | PHM Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell PHM Stock to see if PulteGroup’s edge holds up under the hood or if D.R. Horton still has cards to play (see Buy or Sell DHI Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| DHI Return | 32% | 59% | -17% | 72% | -7% | 33% | 265% | <=== | |
| PHM Return | 13% | 34% | -19% | 129% | 6% | 30% | 261% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 10% | 101% | ||
| Monthly Win Rates [3] | |||||||||
| DHI Win Rate | 67% | 75% | 42% | 58% | 58% | 62% | 60% | ||
| PHM Win Rate | 67% | 67% | 42% | 58% | 58% | 43% | 56% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 62% | 63% | <=== | |
| Max Drawdowns [4] | |||||||||
| DHI Max Drawdown | -45% | -4% | -44% | 0% | -11% | -17% | -20% | ||
| PHM Max Drawdown | -54% | -5% | -36% | 0% | -3% | -15% | -19% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 9/8/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read PHM Dip Buyer Analyses and DHI Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.