D.R. Horton vs Copart

This page compares D.R. Horton and Copart, examining their business models, financial performance, and market context in clear, neutral terms. It offers an accessible overview of each company’s activities, drivers, and position within their industries, without recommendations or conclusions. Educational content, not financial advice.

This page compares D.R. Horton and Copart, examining their business models, financial performance, and market context in clear, neutral terms. It offers an accessible overview of each company’s activi...

Comparison Snapshot

Key Financial Metrics

DHI

Metric

CPRT

$43.12B

Market Cap

$39.28B

7.67%

Potential Profit

23.43%

Hold

Analyst Rating

Buy

Why It's Moving

D.R. Horton Beats Q1 Expectations Amid Margin Squeeze, Signaling Homebuilder Resilience.

EPS of $2.03 surpassed estimates of $1.93-$1.98, with revenue at $6.9 billion exceeding $6.66 billion forecasts, underscoring operational strength amid market headwinds.
Home sales gross margin edged up to 20.4% from last quarter's 20.0%, though down yearly, while net sales orders climbed 3% to 18,300 homes, hinting at demand pickup.
Full-year outlook targets $33.5-$35 billion in revenue and 86,000-88,000 closings, backed by $6.6 billion liquidity and expected 10%+ earnings growth, fueling investor optimism despite stock's post-earnings dip.

Sentiment:

🐃Bullish

Stonehage Fleming Boosts Copart Stake as Institutional Confidence Builds Ahead of Key Earnings.

Stonehage Fleming Financial Services raised its Copart position on January 28, reflecting optimism in the company's global salvage and clean-title vehicle sales amid steady demand.
Recent quarterly results showed $0.41 EPS beating estimates by $0.02 despite revenue slightly missing at $1.16B, highlighting resilient margins of 34.24% and year-over-year EPS growth from $0.37.
Copart's P/E ratio of around 24.7x trails peer and industry averages, suggesting the market prices its recurring auction fees conservatively ahead of anticipated low single-digit profit shifts.

Sentiment:

🐃Bullish

D.R. Horton Beats Q1 Expectations Amid Margin Squeeze, Signaling Homebuilder Resilience.

EPS of $2.03 surpassed estimates of $1.93-$1.98, with revenue at $6.9 billion exceeding $6.66 billion forecasts, underscoring operational strength amid market headwinds.
Home sales gross margin edged up to 20.4% from last quarter's 20.0%, though down yearly, while net sales orders climbed 3% to 18,300 homes, hinting at demand pickup.
Full-year outlook targets $33.5-$35 billion in revenue and 86,000-88,000 closings, backed by $6.6 billion liquidity and expected 10%+ earnings growth, fueling investor optimism despite stock's post-earnings dip.

Sentiment:

🐃Bullish

Stonehage Fleming Boosts Copart Stake as Institutional Confidence Builds Ahead of Key Earnings.

Stonehage Fleming Financial Services raised its Copart position on January 28, reflecting optimism in the company's global salvage and clean-title vehicle sales amid steady demand.
Recent quarterly results showed $0.41 EPS beating estimates by $0.02 despite revenue slightly missing at $1.16B, highlighting resilient margins of 34.24% and year-over-year EPS growth from $0.37.
Copart's P/E ratio of around 24.7x trails peer and industry averages, suggesting the market prices its recurring auction fees conservatively ahead of anticipated low single-digit profit shifts.

Sentiment:

🐃Bullish

Investment Analysis

D.R. Horton

DHI

Pros

D.R. Horton is the largest homebuilder in the U.S. for 24 consecutive years, indicating a strong competitive position with a broad geographic footprint.
The company reported a solid gross profit margin of 23.58% and a return on equity of 16%, reflecting strong operational efficiency.
Plans for significant stock repurchases and dividends in fiscal 2026 demonstrate management’s confidence in the company’s value and financial health.

Considerations

The company missed Q4 2025 EPS estimates with a 7.6% shortfall, which negatively affected investor sentiment and stock price.
Revenues and earnings have declined compared to the previous year, with a 6.93% revenue decrease and a 24.62% decrease in earnings for 2025.
Soft homebuyer demand and persistent affordability headwinds are current challenges dampening near-term growth prospects and share price momentum.

Copart

CPRT

Pros

Copart operates a leading online vehicle auction platform, benefiting from strong market position in the vehicle remarketing industry.
The company has diversified global operations, reducing reliance on any single geographic or market segment, which supports growth stability.
Copart’s business model is resilient to economic cycles, as demand for used and salvage vehicles tends to remain steady across market conditions.

Considerations

The vehicle auction industry faces regulatory scrutiny and shifting legislation that could impact future operations and compliance costs.
Growth is partially dependent on used car market trends and accident rates, which can fluctuate and create revenue volatility.
There is execution risk linked to international expansion and integration of acquired businesses, which could dilute focus and strain resources.

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