KB Home (NYSE: KBH) is one of 24 publicly-traded companies in the “Homebuilding” industry, but how does it weigh in compared to its rivals? We will compare KB Home to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, valuation, risk, dividends and earnings.

Volatility and Risk

KB Home has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, KB Home’s rivals have a beta of 1.52, suggesting that their average stock price is 52% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for KB Home and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KB Home 4 12 0 0 1.75
KB Home Competitors 278 1649 1908 38 2.44

KB Home currently has a consensus target price of $21.50, suggesting a potential downside of 23.51%. As a group, “Homebuilding” companies have a potential upside of 1.51%. Given KB Home’s rivals stronger consensus rating and higher probable upside, analysts clearly believe KB Home has less favorable growth aspects than its rivals.

Dividends

KB Home pays an annual dividend of $0.10 per share and has a dividend yield of 0.4%. KB Home pays out 7.2% of its earnings in the form of a dividend. As a group, “Homebuilding” companies pay a dividend yield of 0.8% and pay out 13.4% of their earnings in the form of a dividend.

Profitability

This table compares KB Home and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KB Home 3.22% 7.57% 2.66%
KB Home Competitors 9.82% 14.89% 8.04%

Institutional & Insider Ownership

97.6% of KB Home shares are held by institutional investors. Comparatively, 80.6% of shares of all “Homebuilding” companies are held by institutional investors. 8.6% of KB Home shares are held by insiders. Comparatively, 14.3% of shares of all “Homebuilding” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares KB Home and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
KB Home $3.59 billion $105.61 million 20.22
KB Home Competitors $3.85 billion $247.94 million 486.75

KB Home’s rivals have higher revenue and earnings than KB Home. KB Home is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

KB Home rivals beat KB Home on 12 of the 15 factors compared.

KB Home Company Profile

KB HOME is a homebuilding company. The Company is engaged in selling and building a range of new homes designed primarily for first-time, move-up and active adult homebuyers, including attached and detached single-family residential homes. It operates through five segments, which consist of four homebuilding segments and one financial services segment. Its homebuilding segments include West Coast, Southwest, Central and Southeast. The homebuilding segments are engaged in the acquisition and development of land primarily for residential purposes. The financial services segment offers property and casualty insurance and, in certain instances, earthquake, flood and personal property insurance to its homebuyers in the same markets as its homebuilding segments, and provides title services in the majority of markets located within its Central and Southeast homebuilding segments. It offers homes in development communities, at urban in-fill locations and as part of mixed-use projects.

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