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Stock Comparison · Industry comparison · Residential Construction

D.R. Horton vs Toll Brothers: Which Stock Looks Stronger in 2026?

The structural profiles are close, with D.R. Horton carrying a narrow edge on growth. Toll Brothers still leads on profitability and valuation, which keeps the comparison from looking entirely one-sided. The market setup is mixed, without a decisive signal in either direction. The market is not adding a decisive signal either way — the structural read carries the weight.

The comparison is based on similar long-term financial trajectories, not sector labels. Both peer scores are relative to the Russell 1000 universe, making them directly comparable.

Updated 2026-07-05

The result is anchored in growth, but stability also reinforces the same direction.

INDUSTRY COMPARISON

Both operate in: Residential Construction

This comparison is based on industry proximity, not on functional trajectory similarity. DHI and TOL share the same industry classification.

For a similarity-based comparison, see how D.R. Horton and Toll Brothers each position within their functional peer groups in AssetNext.

Peer-Relative Score
DHI
D.R. Horton, Inc.
56
Peer-Score
Signal qualitylow
Peer basis: Russell 1000
vs
TOL
Toll Brothers, Inc.
53
Peer-Score
Signal qualitylow
Peer basis: Russell 1000

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

The largest gaps do not all point in the same direction.

Dimension spread: DHI vs TOL Profitability 21 43 Stability 52 31 Valuation 76 88 Growth 82 36 DHI TOL
Gap Ranking
#1 Growth +46
#2 Profitability +22
#3 Stability +21
#4 Valuation +12
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for DHI and TOL Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer DHITOL Relative valuation Structural strength

D.R. Horton, Inc. looks stronger, but the price setup still looks more supportive for Toll Brothers, Inc..

Valuation position uses peer-relative PE percentile (idx_pct_pe) where available.

Entry today — historical context

Where DHI and TOL each sit in their own 5-year price and valuation history.

BASED ON 5-YEAR HISTORY DHI Elevated · above norm 0th 50th 100th 11 pct gap TOL Elevated · above norm 0th 50th 100th 87th 98th
DHI (87th percentile) and TOL (98th percentile) both sit in the upper portion of their own 5-year ranges. The historical entry context is broadly similar for both. This reflects entry timing, not which company is structurally stronger.

Describes historical entry positioning only. Descriptive — not investment advice.

Relative Position vs Comparable Companies
Growth
D.R. Horton, Inc. ranks near the top of the group on growth; Toll Brothers, Inc. sits in the weaker half.
Profitability
Toll Brothers, Inc. holds the stronger peer position on profitability.
Growth — Dominant Gap
DHI
82
TOL
36
Gap+46in favour of DHI

The main growth separation is very wide, driven by a meaningfully stronger expansion profile.

What keeps the gap from being one-sided

Profitability still leans toward Toll Brothers, Inc., so the lead is real without reading as one-way.

What this means for the comparison

Growth is the clearest driver of the lead, with profitability adding further support — though profitability still provides a real counterweight.

Explore full peer positioning in AssetNext

Break down the DHI vs TOL comparison across all dimensions with the full interactive tool.

Explore full breakdown →
Other comparisons with conflicting dimension signals

Explore how DHI and TOL each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.