KBH vs. TOL, MTH, TPH, MHO, CVCO, HOV, BZH, DHI, LEN, and PHM
Should you be buying KB Home stock or one of its competitors? The main competitors of KB Home include Toll Brothers (TOL), Meritage Homes (MTH), Tri Pointe Homes (TPH), M/I Homes (MHO), Cavco Industries (CVCO), Hovnanian Enterprises (HOV), Beazer Homes USA (BZH), D.R. Horton (DHI), Lennar (LEN), and PulteGroup (PHM). These companies are all part of the "homebuilding" industry.
KB Home (NYSE:KBH) and Toll Brothers (NYSE:TOL) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, community ranking, analyst recommendations, media sentiment, risk, profitability, earnings, valuation and dividends.
Toll Brothers received 85 more outperform votes than KB Home when rated by MarketBeat users. Likewise, 57.21% of users gave Toll Brothers an outperform vote while only 47.21% of users gave KB Home an outperform vote.
KB Home currently has a consensus price target of $66.30, suggesting a potential downside of 4.29%. Toll Brothers has a consensus price target of $123.27, suggesting a potential upside of 2.63%. Given Toll Brothers' stronger consensus rating and higher probable upside, analysts clearly believe Toll Brothers is more favorable than KB Home.
KB Home pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. Toll Brothers pays an annual dividend of $0.92 per share and has a dividend yield of 0.8%. KB Home pays out 13.6% of its earnings in the form of a dividend. Toll Brothers pays out 6.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Toll Brothers has a net margin of 15.07% compared to KB Home's net margin of 9.29%. Toll Brothers' return on equity of 20.91% beat KB Home's return on equity.
KB Home has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Toll Brothers has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.
In the previous week, Toll Brothers had 34 more articles in the media than KB Home. MarketBeat recorded 42 mentions for Toll Brothers and 8 mentions for KB Home. KB Home's average media sentiment score of 0.87 beat Toll Brothers' score of 0.34 indicating that KB Home is being referred to more favorably in the media.
96.1% of KB Home shares are owned by institutional investors. Comparatively, 91.8% of Toll Brothers shares are owned by institutional investors. 3.5% of KB Home shares are owned by insiders. Comparatively, 1.5% of Toll Brothers shares are owned 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.
Toll Brothers has higher revenue and earnings than KB Home. Toll Brothers is trading at a lower price-to-earnings ratio than KB Home, indicating that it is currently the more affordable of the two stocks.
Summary
Toll Brothers beats KB Home on 15 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding KBH and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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