PulteGroup (PHM) vs. Its Competitors Critical Analysis
PulteGroup (NYSE: PHM) is one of 24 publicly-traded companies in the “Homebuilding” industry, but how does it weigh in compared to its rivals? We will compare PulteGroup to related companies based on the strength of its analyst recommendations, earnings, risk, institutional ownership, profitability, dividends and valuation.
PulteGroup pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. PulteGroup pays out 17.6% 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 raised its dividend for 3 consecutive years.
Earnings & Valuation
This table compares PulteGroup and its rivals revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|PulteGroup||$7.67 billion||$602.70 million||16.72|
|PulteGroup Competitors||$3.89 billion||$231.12 million||509.45|
PulteGroup has higher revenue and earnings than its rivals. PulteGroup 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.
This is a summary of recent ratings and recommmendations for PulteGroup and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PulteGroup currently 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 4.35%. Given PulteGroup’s rivals stronger consensus rating and higher probable upside, analysts clearly believe PulteGroup has less favorable growth aspects than its rivals.
Insider and Institutional Ownership
84.8% of PulteGroup shares are owned by institutional investors. Comparatively, 78.9% of shares of all “Homebuilding” companies are owned by institutional investors. 0.7% of PulteGroup shares are owned by insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
PulteGroup has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, PulteGroup’s rivals have a beta of 1.52, meaning that their average share price is 52% more volatile than the S&P 500.
This table compares PulteGroup and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PulteGroup rivals 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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