DHI vs GRBK: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
DHI is the larger of the two ($38.99B market cap): the incumbent the market prices for continued execution (12.36x forward earnings, beta 1.35). GRBK is the smaller challenger ($2.63B), cheaper on forward earnings (10.20x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
DHI vs GRBK: the tie-breaker metrics
Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | DHI | GRBK | What it tells you |
|---|---|---|---|
| Market cap | $38.99B | $2.63B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 12.36 | 10.20 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 13.29 | 9.21 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.35 | 1.76 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 22% of range | 9% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.64 | 1.36 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: GRBK is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how DHI and GRBK affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. DHI and GRBK share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined DHI and GRBK exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does D.R. Horton (DHI) do?
D.R. Horton is the largest homebuilder in the United States by volume, building and selling homes across affordable, move-up, luxury, and active-adult segments under brands including D.R. Horton, Express Homes, Emerald Homes, and Freedom Homes. The company operates in dozens of states and hundreds of markets, focusing heavily on entry-level and first-time buyers, where demand has been most durable. D.R. Horton makes money primarily by acquiring and developing land, constructing homes, and selling them to buyers, with additional revenue from its financial-services arm (mortgage origination and title services) and from Forestar, its majority-owned residential lot-development company. A hallmark of its strategy is an asset-light land approach, using options and lot-banking to reduce the capital tied up in raw land. Scale gives D.R. Horton purchasing power with suppliers and subcontractors, helping it compete on price and absorb cyclical swings. It is headquartered in Arlington, Texas, and is a member of the S&P 500.
What does Green Brick Partners (GRBK) do?
Green Brick Partners is a diversified homebuilding and land-development company that operates through several subsidiary builders, including Trophy Signature Homes and its other Texas brands, The Providence Group in Atlanta, and GHO Homes in Florida. It is the third largest homebuilder in Dallas-Fort Worth and focuses on selected submarkets in Texas, Georgia, and Florida where population growth, job creation, and lot scarcity support strong home absorptions and pricing. A defining feature is its land strategy: Green Brick acquires, develops, and controls residential lots that feed its builders, which has historically produced some of the highest gross margins in the public homebuilder group. David Einhorn's Greenlight Capital is a long-standing large shareholder and Einhorn chairs the board. In July 2026 the company promoted Jed Dolson to co-CEO.
DHI vs GRBK: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- DHI drivers: Structural housing shortage; Entry-level focus and scale.
- GRBK drivers: Land-development margin edge; Sun Belt geographic concentration.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Homebuilding is highly cyclical and sensitive to mortgage rates and the broader economy. For GRBK, as a homebuilder, GRBK is highly cyclical and sensitive to mortgage rates, affordability, and buyer confidence, and a sustained rate spike or recession could sharply cut demand; mortgage rates touched 7% in September 2026.
DHI or GRBK: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick DHI if you believe its drivers more; GRBK if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the DHI and GRBK guides.
DHI vs GRBK: the full fundamentals
DHI. D.R. Horton trades near 13x trailing and 12x forward earnings as of October 16, 2026, a below-market multiple that reflects the cyclical, rate-sensitive nature of homebuilding and the fact that earnings have fallen from their 2022 peak. Consensus looks for fiscal 2026 EPS of about $10.42 and about $11.27 in fiscal 2027, and the 14 analysts tracked by Yahoo Finance hold a hold-leaning consensus with a mean target of about $153. The fiscal fourth-quarter report on October 29, 2026, with consensus EPS near $3.00, is the next marker for orders, incentives and margins.
GRBK. Green Brick earned about $288 million on roughly $1.97 billion of trailing revenue, and the second quarter of 2026 beat estimates by a wide margin even as sales fell year over year. At about $61.61 the stock trades near 9x trailing and 10x forward earnings and around 1.4x book value, a valuation that prices it as a late-cycle homebuilder with falling earnings rather than a grower. No dividend is paid, and the next read on margins and orders comes with third-quarter results on October 28, 2026.
Headline figures (approximate, October 2026): DHI shows revenue (ttm) ~$33.4 billion; latest quarter flat year over year, latest quarter (fiscal q3, to jun 30) Revenue ~$9.23B; EPS $3.20 vs ~$2.99 estimate, margins (ttm) ~21.3% gross, ~13.0% operating, ~9.2% net, net income (ttm) ~$3.05 billion; GRBK shows revenue (ttm) ~$1.97B, revenue growth (latest quarter, yoy) ~-9%, net income (ttm) ~$288M, diluted eps (ttm) ~$6.64.
The bottom line: DHI vs GRBK
DHI and GRBK are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined DHI and GRBK exposure against your real portfolio. It is not an investment adviser.
Wondering how DHI or GRBK fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in D.R. Horton with AI
Connect the broker you already use and ask Walnut's AI how DHI fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between DHI and GRBK?
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D.R. Green Brick Partners is a diversified homebuilding and land-development company that operates through several subsidiary builders, including Trophy Signature Homes and its other Texas brands, The Providence Group in Atlanta, and GHO Homes in Florida. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is DHI or GRBK the better stock?
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Neither is universally better. DHI is the larger incumbent; GRBK is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, DHI or GRBK?
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On forward P/E (as of October 2026), DHI trades at 12.36x and GRBK at 10.20x, so GRBK is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both DHI and GRBK?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of DHI vs GRBK?
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DHI: Homebuilding is highly cyclical and sensitive to mortgage rates and the broader economy. Higher rates reduce affordability and can sharply cut order volumes, while builders must offer costly rate buydowns and incentives that pressure margins. Land, labor, and materials costs can rise, and the business is exposed to recessions, unemployment, and consumer confidence. A housing downturn can compress both volumes and margins quickly. The stock often trades at a modest multiple precisely because of this cyclicality, and regional concentration, regulatory changes, and supply-chain disruptions add further risk. Those pressures are visible in the 2026 numbers: gross margin over the trailing twelve months was about 21.3% and operating margin about 13%, below the levels of the 2022 peak, and consensus expects fiscal 2026 EPS of about $10.42, down about 10% from the prior year. In October 2026 Oppenheimer flagged slower home sales and margin pressure, and RBC, Citigroup and Wells Fargo lowered price targets. GRBK: As a homebuilder, GRBK is highly cyclical and sensitive to mortgage rates, affordability, and buyer confidence, and a sustained rate spike or recession could sharply cut demand; mortgage rates touched 7% in September 2026. Revenue has fallen year over year (down about 9% in the latest quarter) and analysts expect 2026 EPS to drop about 13%, as the company uses incentives to sustain sales pace. Its geographic concentration in Texas, Georgia, and Florida means a regional job or housing shock, or overbuilding in those markets, would hit it harder than a national builder. It is small relative to D.R. Horton and Lennar, so it has less scale, less buying power, and thinner trading liquidity; only one analyst in the Yahoo consensus covers it, with a $62 target and a hold rating. Land development also carries entitlement, construction-cost, and timing risk if a downturn arrives while capital is tied up in lots, and trailing free cash flow is close to zero. The move to a co-CEO structure adds some leadership-transition risk.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell DHI or GRBK; figures are approximate and dated (as of October 2026). Verify current data before investing.