KBH vs. MTH, TPH, MHO, TOL, TMHC, DFH, CCS, AWI, GTES, and LPX
Should you be buying KB Home stock or one of its competitors? The main competitors of KB Home include Meritage Homes (MTH), Tri Pointe Homes (TPH), M/I Homes (MHO), Toll Brothers (TOL), Taylor Morrison Home (TMHC), Dream Finders Homes (DFH), Century Communities (CCS), Armstrong World Industries (AWI), Gates Industrial (GTES), and Louisiana-Pacific (LPX). These companies are all part of the "construction" sector.
Meritage Homes (NYSE:MTH) and KB Home (NYSE:KBH) are both mid-cap construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, community ranking, analyst recommendations, earnings, institutional ownership, profitability, media sentiment, risk and dividends.
98.4% of Meritage Homes shares are held by institutional investors. Comparatively, 96.1% of KB Home shares are held by institutional investors. 2.0% of Meritage Homes 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
In the previous week, Meritage Homes had 8 more articles in the media than KB Home. MarketBeat recorded 22 mentions for Meritage Homes and 14 mentions for KB Home. Meritage Homes' average media sentiment score of 0.80 beat KB Home's score of 0.65 indicating that KB Home is being referred to more favorably in the news media.
Meritage Homes has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, KB Home has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.
KB Home received 112 more outperform votes than Meritage Homes when rated by MarketBeat users. However, 55.48% of users gave Meritage Homes an outperform vote while only 47.25% of users gave KB Home an outperform vote.
Meritage Homes has higher earnings, but lower revenue than KB Home. Meritage Homes is trading at a lower price-to-earnings ratio than KB Home, indicating that it is currently the more affordable of the two stocks.
Meritage Homes currently has a consensus price target of $172.67, suggesting a potential upside of 4.61%. KB Home has a consensus price target of $66.11, suggesting a potential upside of 2.89%. Given KB Home's higher possible upside, analysts plainly believe Meritage Homes is more favorable than KB Home.
Meritage Homes has a net margin of 12.03% compared to Meritage Homes' net margin of 9.29%. KB Home's return on equity of 17.03% beat Meritage Homes' return on equity.
Meritage Homes pays an annual dividend of $3.00 per share and has a dividend yield of 1.8%. KB Home pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. Meritage Homes pays out 15.1% of its earnings in the form of a dividend. KB Home pays out 10.9% 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. Meritage Homes has increased its dividend for 1 consecutive years and KB Home has increased its dividend for 1 consecutive years.
Summary
Meritage Homes beats KB Home on 12 of the 20 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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