Reviewing D.R. Horton (NYSE:DHI) and Dorel Industries (OTCMKTS:DIIBF)

Dorel Industries (OTCMKTS:DIIBF) and D.R. Horton (NYSE:DHI) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

90.6% of D.R. Horton shares are owned by institutional investors. 19.3% of Dorel Industries shares are owned by company insiders. Comparatively, 0.7% of D.R. Horton shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Dorel Industries and D.R. Horton”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dorel Industries	$1.19 billion	0.03	-$142.22 million	($4.16)	-0.27
D.R. Horton	$34.25 billion	1.17	$3.59 billion	$10.51	13.59

D.R. Horton has higher revenue and earnings than Dorel Industries. Dorel Industries is trading at a lower price-to-earnings ratio than D.R. Horton, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Dorel Industries has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, D.R. Horton has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Dorel Industries and D.R. Horton, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dorel Industries	0	1	0	0	2.00
D.R. Horton	0	10	5	0	2.33

D.R. Horton has a consensus price target of $166.92, suggesting a potential upside of 16.88%. Given D.R. Horton’s stronger consensus rating and higher probable upside, analysts clearly believe D.R. Horton is more favorable than Dorel Industries.

Profitability

This table compares Dorel Industries and D.R. Horton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dorel Industries	-12.73%	N/A	-11.89%
D.R. Horton	9.15%	12.47%	8.59%

Summary

D.R. Horton beats Dorel Industries on 12 of the 14 factors compared between the two stocks.

About Dorel Industries

Dorel Industries Inc. engages in the design, manufacture, sourcing, marketing, and distribution of home and juvenile products worldwide. The company operates through Dorel Home and Dorel Juvenile segments. The Dorel Home segment offers ready-to assemble furniture and home furnishings products, including metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. This segment markets its products under the DHP, Signature Sleep, Little Seeds, Ameriwood Home, Cosco Home & Office, Queer Eye, Cosmo Living, Novogratz, Real Rooms, Mr. Kate, Baby Relax, Alphason, Bertini, Ntense, and Notio brands. The Dorel Juvenile segment provides children's accessories comprising infant car seats, strollers, home equipment, toys, infant health, and safety aids under the Maxi-Cosi, Tiny Love, Infanti, Safety 1st, Bébé Confort, Quinny, and Cosco brands. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.

About D.R. Horton

D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 118 markets across 33 states under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes. The company constructs and sells single-family detached homes; and attached homes, such as townhomes, duplexes, and triplexes. It also provides mortgage financing services; and title insurance policies, and examination and closing services, as well as engages in the residential lot development business. In addition, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; and owns non-residential real estate, including ranch land and improvements. It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.