KBH vs. MTH, TPH, MHO, TOL, TMHC, DFH, CCS, BCC, AWI, and THO
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), Boise Cascade (BCC), Armstrong World Industries (AWI), and THOR Industries (THO). 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 business? We will contrast the two companies based on the strength of their community ranking, dividends, analyst recommendations, institutional ownership, risk, media sentiment, profitability, earnings and valuation.
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.
In the previous week, KB Home had 9 more articles in the media than Meritage Homes. MarketBeat recorded 20 mentions for KB Home and 11 mentions for Meritage Homes. KB Home's average media sentiment score of 0.81 beat Meritage Homes' score of 0.66 indicating that Meritage Homes is being referred to more favorably in the media.
Meritage Homes currently has a consensus price target of $178.25, indicating a potential downside of 2.60%. KB Home has a consensus price target of $66.30, indicating a potential downside of 9.24%. Given KB Home's stronger consensus rating and higher possible upside, equities analysts clearly believe Meritage Homes is more favorable than KB Home.
KB Home received 111 more outperform votes than Meritage Homes when rated by MarketBeat users. However, 55.40% of users gave Meritage Homes an outperform vote while only 47.21% of users gave KB Home an outperform vote.
Meritage Homes has a net margin of 12.54% compared to Meritage Homes' net margin of 9.29%. KB Home's return on equity of 17.63% beat Meritage Homes' return on equity.
Meritage Homes has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, KB Home has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.
98.4% of Meritage Homes shares are owned by institutional investors. Comparatively, 96.1% of KB Home shares are owned by institutional investors. 2.0% of Meritage Homes shares are owned by insiders. Comparatively, 4.4% of KB Home 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.
Meritage Homes pays an annual dividend of $3.00 per share and has a dividend yield of 1.6%. KB Home pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. Meritage Homes pays out 14.0% of its earnings in the form of a dividend. KB Home pays out 13.6% 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 raised its dividend for 1 consecutive years and KB Home has raised its dividend for 2 consecutive years.
Summary
Meritage Homes beats KB Home on 13 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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