KB Home (NYSE: KBH) is one of 21 public companies in the “Homebuilding” industry, but how does it contrast to its rivals? We will compare KB Home to similar businesses based on the strength of its institutional ownership, analyst recommendations, earnings, profitability, dividends, risk and valuation.

Insider & 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

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 21.65
KB Home Competitors $3.83 billion $231.12 million 497.94

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.

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 13.7% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations and price targets for KB Home and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KB Home 4 12 0 0 1.75
KB Home Competitors 264 1507 1731 36 2.43

KB Home presently has a consensus price target of $21.93, indicating a potential downside of 27.12%. As a group, “Homebuilding” companies have a potential downside of 1.01%. Given KB Home’s rivals stronger consensus rating and higher probable upside, analysts clearly believe KB Home has less favorable growth aspects than its rivals.

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 4.39% 11.08% 4.00%
KB Home Competitors 9.53% 15.00% 7.98%

Volatility & Risk

KB Home has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, KB Home’s rivals have a beta of 1.51, indicating that their average stock price is 51% more volatile than the S&P 500.

Summary

KB Home rivals 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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