M/I Homes vs RH

M/I Homes and RH are compared on business models, financial performance, and market context to offer a clear, neutral overview. This page presents how each company operates, competes, and positions itself, without recommendations or predictions. Educational content, not financial advice.

M/I Homes and RH are compared on business models, financial performance, and market context to offer a clear, neutral overview. This page presents how each company operates, competes, and positions it...

About The Companies

M/I Homes (MHO)

M/I Homes, Inc. (MHO) is a US residential homebuilder that develops and sells new single‑family homes across multiple regional markets. The company’s performance is closely tied to housing demand, mortgage rates and land and labour costs; investors typically watch order backlog, gross margins, and land inventory as leading indicators. With a market capitalisation of about $3.7 billion, M/I Homes competes on community design, construction quality and customer service, and may offer ancillary financing or warranty services in some markets. The stock can be volatile through housing cycles: sales slow in a high‑rate environment while margins can improve when volumes and prices rise. This summary is for general, educational purposes only and is not personal financial advice — suitability depends on your objectives, timeframe and risk tolerance. Values can rise and fall and past performance is not a guide to the future.

RH (RH)

Restoration Hardware (RH) is a US-based retailer that designs, sources and sells premium home furnishings, lighting and décor. It operates a gallery-style showroom model combined with e-commerce and catalogue distribution, positioning itself toward affluent, design-focused customers. Revenue depends on product assortment, pricing power and the company’s ability to curate aspirational collections; gross margins can be higher than mass-market peers when assortment resonates. RH’s results tend to be cyclical — tied to housing activity, renovation spending and consumer confidence — and can be affected by supply-chain costs and commodity prices. The company has invested heavily in larger galleries and direct-to-consumer channels to build brand experience and repeat customers, though execution and inventory management remain important. Market cap is roughly $3.48bn. This summary is for educational purposes only and not personalised investment advice; values can fall as well as rise and prospective investors should assess suitability and consult a professional if needed.

Comparison Snapshot

Key Financial Metrics

MHO

Metric

RH

$3.55B

Market Cap

$3.04B

20.57%

Potential Profit

27.32%

Strong Buy

Analyst Rating

Hold

Which Baskets Do They Appear In?

The Umansky Effect: Riding the Luxury Housing Wave

This curated collection focuses on companies set to benefit from the continued strength in luxury real estate. Based on insights from The Agency CEO Mauricio Umansky, these stocks span premium homebuilders, high-end material suppliers, and luxury furnishing brands positioned to thrive in a resilient high-end housing market.

Published: July 1, 2025

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Which Baskets Do They Appear In?

The Umansky Effect: Riding the Luxury Housing Wave

This curated collection focuses on companies set to benefit from the continued strength in luxury real estate. Based on insights from The Agency CEO Mauricio Umansky, these stocks span premium homebuilders, high-end material suppliers, and luxury furnishing brands positioned to thrive in a resilient high-end housing market.

Published: July 1, 2025

Explore Basket

Investment Analysis

M/I Homes

MHO

Pros

M/I Homes operates across 17 markets in 10 states, primarily in the Midwest and Southern US, providing a diversified geographic presence.
The company delivered a 5% revenue increase in Q2 2025 supported by a 6% increase in home deliveries, demonstrating growth momentum.
Strong liquidity position with a high current ratio of 13.72 and a quick ratio of 2.52, indicating good short-term financial stability.

Considerations

M/I Homes has faced margin pressure, with gross margins declining from 27.9% to 24.7% year-over-year, impacting profitability.
The company missed Q3 2025 earnings and revenue estimates, causing a significant stock price drop and investor concerns.
Despite revenue growth, pre-tax income and diluted EPS declined year-over-year, showing challenges in converting sales growth into profits.

RH

Pros

RH has a strong brand equity in the luxury home furnishings market, offering premium and differentiated products.
The company shows steady revenue growth driven by expanding product lines and increasing direct-to-consumer sales channels.
RH’s focus on experiential retail and high-end customer experience supports strong customer loyalty and potential for margin improvement.

Considerations

RH’s premium product focus makes it more vulnerable to economic downturns impacting discretionary spending.
The company faces execution risks due to high fixed costs and investments in expanding retail footprint and digital platforms.
RH’s stock can be volatile given sensitivity to macroeconomic factors and competitive pressures in the high-end retail market.

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About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

The Umansky Effect: Riding the Luxury Housing Wave

Which Baskets Do They Appear In?

The Umansky Effect: Riding the Luxury Housing Wave