PulteGroup (NYSE: PHM) is one of 22 publicly-traded companies in the “Homebuilding” industry, but how does it compare to its competitors? We will compare PulteGroup to related companies based on the strength of its profitability, earnings, analyst recommendations, institutional ownership, valuation, risk and dividends.

Insider & Institutional Ownership

84.8% of PulteGroup shares are held by institutional investors. Comparatively, 78.9% of shares of all “Homebuilding” companies are held by institutional investors. 0.7% of PulteGroup shares are held by insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares PulteGroup and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PulteGroup $7.67 billion $602.70 million 16.97
PulteGroup Competitors $3.89 billion $246.46 million 553.94

PulteGroup has higher revenue and earnings than its competitors. PulteGroup is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares PulteGroup and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PulteGroup 7.77% 14.38% 6.53%
PulteGroup Competitors 9.78% 14.88% 8.22%

Volatility and Risk

PulteGroup has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, PulteGroup’s competitors have a beta of 1.51, indicating that their average share price is 51% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for PulteGroup and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PulteGroup 2 7 5 0 2.21
PulteGroup Competitors 267 1629 1869 36 2.44

PulteGroup presently has a consensus target price of $28.80, suggesting a potential downside of 15.54%. As a group, “Homebuilding” companies have a potential downside of 4.56%. Given PulteGroup’s competitors stronger consensus rating and higher possible upside, analysts plainly believe PulteGroup has less favorable growth aspects than its competitors.

Dividends

PulteGroup pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. PulteGroup pays out 17.9% of its earnings in the form of a dividend. As a group, “Homebuilding” companies pay a dividend yield of 0.8% and pay out 13.7% of their earnings in the form of a dividend. PulteGroup has increased its dividend for 3 consecutive years.

Summary

PulteGroup competitors beat PulteGroup on 11 of the 15 factors compared.

PulteGroup Company Profile

PulteGroup, Inc. is a homebuilder in the United States. The Company’s segments include Homebuilding and Financial Services. Its Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the United States and the construction of housing on such land. Its Financial Services operations consist principally of mortgage banking and title operations. The Company conducts its financial services business, through Pulte Mortgage LLC (Pulte Mortgage) and other subsidiaries. Pulte Mortgage arranges financing through the origination of mortgage loans. The Company’s subsidiaries are engaged in the homebuilding business. It offers a product line to meet the needs of homebuyers in its focused markets. Through its brands, which include Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods, the Company offers a range of home designs, including single-family detached, townhouses, condominiums and duplexes.

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