Financial Contrast: KB Home (KBH) vs. Its Competitors
KB Home (NYSE: KBH) is one of 23 public companies in the “Homebuilding” industry, but how does it contrast to its peers? We will compare KB Home to similar companies based on the strength of its valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.
Earnings and Valuation
This table compares KB Home and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|KB Home||$3.59 billion||$105.61 million||20.22|
|KB Home Competitors||$3.85 billion||$231.04 million||513.88|
KB Home’s peers have higher revenue and earnings than KB Home. KB Home is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of current recommendations and price targets for KB Home and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|KB Home Competitors||261||1591||1868||36||2.45|
KB Home currently has a consensus price target of $21.50, indicating a potential downside of 23.51%. As a group, “Homebuilding” companies have a potential upside of 0.80%. Given KB Home’s peers stronger consensus rating and higher probable upside, analysts plainly believe KB Home has less favorable growth aspects than its peers.
Volatility & Risk
KB Home has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, KB Home’s peers have a beta of 1.51, indicating that their average share price is 51% more volatile than the S&P 500.
Institutional & Insider Ownership
97.5% of KB Home shares are held by institutional investors. Comparatively, 81.1% 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares KB Home and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|KB Home Competitors||9.97%||14.88%||8.14%|
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.
KB Home peers 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.
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