KBH vs. TOL, MTH, TPH, MHO, CVCO, HOV, BZH, DHI, LEN, and NVR
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 NVR (NVR). These companies are all part of the "homebuilding" industry.
Toll Brothers (NYSE:TOL) and KB Home (NYSE:KBH) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, community ranking, analyst recommendations, media sentiment, profitability, risk and earnings.
In the previous week, Toll Brothers had 2 more articles in the media than KB Home. MarketBeat recorded 19 mentions for Toll Brothers and 17 mentions for KB Home. Toll Brothers' average media sentiment score of 0.79 beat KB Home's score of 0.69 indicating that KB Home is being referred to more favorably in the news media.
Toll Brothers presently has a consensus price target of $131.25, indicating a potential downside of 5.85%. KB Home has a consensus price target of $71.88, indicating a potential downside of 14.19%. Given KB Home's stronger consensus rating and higher possible upside, equities analysts clearly believe Toll Brothers is more favorable than KB Home.
Toll Brothers received 86 more outperform votes than KB Home when rated by MarketBeat users. Likewise, 57.17% of users gave Toll Brothers an outperform vote while only 47.18% of users gave KB Home an outperform vote.
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.
Toll Brothers has a net margin of 15.07% compared to Toll Brothers' net margin of 9.43%. KB Home's return on equity of 20.91% beat Toll Brothers' return on equity.
Toll Brothers has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, KB Home has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500.
91.8% of Toll Brothers shares are held by institutional investors. Comparatively, 96.1% of KB Home shares are held by institutional investors. 1.5% of Toll Brothers shares are held by company insiders. Comparatively, 4.4% of KB Home shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Toll Brothers pays an annual dividend of $0.92 per share and has a dividend yield of 0.7%. KB Home pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. Toll Brothers pays out 6.3% of its earnings in the form of a dividend. KB Home pays out 13.2% 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.
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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