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

Risk & Volatility

PulteGroup has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, PulteGroup’s peers have a beta of 1.51, meaning that their average share price is 51% more volatile than the S&P 500.

Insider & Institutional Ownership

85.1% of PulteGroup shares are owned by institutional investors. Comparatively, 79.0% of shares of all “Homebuilding” companies are owned by institutional investors. 0.7% of PulteGroup 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

PulteGroup pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. PulteGroup pays out 17.9% 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. PulteGroup has raised its dividend for 3 consecutive years.

Valuation and Earnings

This table compares PulteGroup and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PulteGroup $7.67 billion $602.70 million 16.89
PulteGroup Competitors $3.83 billion $231.12 million 458.20

PulteGroup has higher revenue and earnings than its peers. PulteGroup 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.

Profitability

This table compares PulteGroup and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PulteGroup 7.77% 14.38% 6.53%
PulteGroup Competitors 9.75% 14.94% 7.99%

Analyst Recommendations

This is a breakdown of current ratings and price targets for PulteGroup and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PulteGroup 2 7 5 0 2.21
PulteGroup Competitors 263 1565 1604 26 2.40

PulteGroup presently has a consensus target price of $28.80, indicating a potential downside of 15.14%. As a group, “Homebuilding” companies have a potential upside of 0.10%. Given PulteGroup’s peers stronger consensus rating and higher possible upside, analysts clearly believe PulteGroup has less favorable growth aspects than its peers.

Summary

PulteGroup peers 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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