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

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 9.89% 14.79% 8.04%

Institutional & Insider Ownership

97.0% of KB Home shares are held by institutional investors. Comparatively, 79.0% 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

KB Home has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, KB Home’s competitors have a beta of 1.51, indicating that their average stock price is 51% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations 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 265 1620 1878 36 2.44

KB Home currently has a consensus target price of $21.93, suggesting a potential downside of 23.94%. As a group, “Homebuilding” companies have a potential upside of 1.25%. Given KB Home’s competitors stronger consensus rating and higher probable upside, analysts plainly believe KB Home has less favorable growth aspects than its competitors.

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 0.7% and pay out 13.4% of their earnings in the form of a dividend.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
KB Home $3.59 billion $105.61 million 20.74
KB Home Competitors $3.83 billion $231.12 million 508.08

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.

Summary

KB Home competitors 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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