Ross vs D.R. Horton

Ross Stores Inc. and D.R. Horton, Inc. are compared here to outline their business models, financial performance, and market context in a neutral, accessible way. This page explains how each company operates, grows, and competes within its sector. Educational content, not financial advice.

Ross Stores Inc. and D.R. Horton, Inc. are compared here to outline their business models, financial performance, and market context in a neutral, accessible way. This page explains how each company o...

Comparison Snapshot

Key Financial Metrics

ROST

Metric

DHI

$61.49B

Market Cap

$43.39B

0.17%

Potential Profit

4.41%

Buy

Analyst Rating

Hold

Why It's Moving

Ross Stores Hits Record High as Earnings Beat Streak and Leadership Shift Fuel Momentum.

Q3 comps surged 7% with EPS of $1.58 beating estimates by 12.86%, signaling robust consumer demand for bargain apparel and home goods.
Zacks flags +3.09% Earnings ESP and Rank #2 (Buy) ahead of next report, highlighting potential for another beat after recent 7.74% average surprise.
Board Chair Michael Balmuth stepped down January 31 with new leadership eyeing store expansions, self-checkout rollouts, and comps growth of 4-7%.

Sentiment:

🐃Bullish

D.R. Horton Beats Q1 Earnings Despite Revenue Dip, Signals Steady Path Ahead Amid Housing Headwinds

EPS of $2.03 crushed consensus of $1.98, highlighting operational strength and a 20.4% gross margin bolstered by warranty benefits.
Repurchased 4.4 million shares for $669.7 million while declaring a $0.45 quarterly dividend payable February 12, underscoring commitment to shareholders amid $819 million liquidity.
Q2 gross margin guided to 19.0-19.5% with fiscal 2026 outlook intact at $33.5-35 billion in revenue, reflecting cautious optimism despite market pressures.

Sentiment:

⚖️Neutral

Ross Stores Hits Record High as Earnings Beat Streak and Leadership Shift Fuel Momentum.

Q3 comps surged 7% with EPS of $1.58 beating estimates by 12.86%, signaling robust consumer demand for bargain apparel and home goods.
Zacks flags +3.09% Earnings ESP and Rank #2 (Buy) ahead of next report, highlighting potential for another beat after recent 7.74% average surprise.
Board Chair Michael Balmuth stepped down January 31 with new leadership eyeing store expansions, self-checkout rollouts, and comps growth of 4-7%.

Sentiment:

🐃Bullish

D.R. Horton Beats Q1 Earnings Despite Revenue Dip, Signals Steady Path Ahead Amid Housing Headwinds

EPS of $2.03 crushed consensus of $1.98, highlighting operational strength and a 20.4% gross margin bolstered by warranty benefits.
Repurchased 4.4 million shares for $669.7 million while declaring a $0.45 quarterly dividend payable February 12, underscoring commitment to shareholders amid $819 million liquidity.
Q2 gross margin guided to 19.0-19.5% with fiscal 2026 outlook intact at $33.5-35 billion in revenue, reflecting cautious optimism despite market pressures.

Sentiment:

⚖️Neutral

Investment Analysis

Ross

ROST

Pros

Ross Stores has demonstrated consistent revenue growth and operational efficiency with a solid demand for its discounted apparel and home fashion products.
The company is executing an aggressive store expansion strategy, growing its store count by approximately 4.1% annually, which supports increased revenue potential.
Ross Stores maintains a low debt-to-equity ratio, indicating strong financial stability and lower risk compared to its retail peers.

Considerations

Insider selling activity has been noted recently, which may signal concerns about the company's near-term performance from management insiders.
The stock trades at a relatively high price-to-earnings ratio, suggesting it may be overvalued and limiting significant upside potential.
Ross Stores’ stock price has shown volatility over the past year, with fluctuations that could be unattractive to investors seeking stability.

D.R. Horton

DHI

Pros

D.R. Horton has a strong competitive position as one of the largest homebuilders in the US, operating in 31 states with diversified regional exposure.
The company’s return on equity (ROE) of 14.62% reflects efficient use of shareholder capital and strong profitability in the residential construction sector.
D.R. Horton offers integrated services including mortgage financing and title insurance, providing diverse revenue streams and potential cross-selling advantages.

Considerations

The current ROE is below its 10-year average, indicating a potential recent dip in profitability compared to historical performance.
As a homebuilder, D.R. Horton is exposed to macroeconomic risks including interest rate fluctuations and housing market cyclicality, which could impact demand.
The residential construction industry faces execution risks such as supply chain disruptions and rising material costs that could pressure margins.

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