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

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 14.5% 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 9.74% 14.79% 7.94%

Insider and Institutional Ownership

97.0% of KB Home shares are owned by institutional investors. Comparatively, 78.9% of shares of all “Homebuilding” companies are owned by institutional investors. 8.6% of KB Home shares are owned by company insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

KB Home has a beta of 1.69, suggesting that its stock price is 69% 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.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
KB Home $3.59 billion $105.61 million 21.91
KB Home Competitors $3.83 billion $231.12 million 5,557.62

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.

Analyst Recommendations

This is a breakdown of recent recommendations for KB Home and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KB Home 4 12 0 0 1.75
KB Home Competitors 282 1681 1925 38 2.44

KB Home presently has a consensus target price of $21.93, indicating a potential downside of 27.98%. As a group, “Homebuilding” companies have a potential downside of 74.32%. Given KB Home’s higher possible upside, equities analysts plainly believe KB Home is more favorable than its rivals.

Summary

KB Home rivals beat KB Home on 11 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.

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