KB Home (NYSE: KBH) is one of 23 publicly-traded companies in the “Homebuilding” industry, but how does it contrast to its competitors? We will compare KB Home to related companies based on the strength of its dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Insider and Institutional Ownership

97.0% of KB Home shares are held by institutional investors. Comparatively, 78.9% of shares of all “Homebuilding” companies are held by institutional investors. 8.6% of KB Home 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, endowments and large money managers believe a company is poised for long-term growth.

Dividends

KB Home pays an annual dividend of $0.10 per share and has a dividend yield of 0.3%. 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 13.7% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and target prices for KB Home and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KB Home 4 12 0 0 1.75
KB Home Competitors 284 1674 1903 38 2.43

KB Home currently has a consensus target price of $21.93, indicating a potential downside of 29.63%. As a group, “Homebuilding” companies have a potential downside of 4.91%. Given KB Home’s competitors stronger consensus rating and higher possible upside, analysts plainly believe KB Home has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares KB Home and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
KB Home $3.59 billion $105.61 million 22.42
KB Home Competitors $3.89 billion $231.12 million 481.07

KB Home’s competitors have higher revenue and earnings than KB Home. KB Home 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.

Risk and Volatility

KB Home has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, KB Home’s competitors have a beta of 1.52, indicating that their average stock price is 52% more volatile than the S&P 500.

Profitability

This table compares KB Home and its competitors’ 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 9.66% 14.80% 8.01%

Summary

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

About KB Home

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.

Receive News & Ratings for KB Home Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for KB Home and related companies with Analyst Ratings Network's FREE daily email newsletter.