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.
KB Home (NYSE:KBH) and Meritage Homes (NYSE:MTH) are both mid-cap construction companies, but which is the better investment? We will contrast the two companies based on the strength of their community ranking, dividends, earnings, media sentiment, analyst recommendations, institutional ownership, profitability, valuation and risk.
96.1% of KB Home shares are owned by institutional investors. Comparatively, 98.4% of Meritage Homes shares are owned by institutional investors. 4.4% of KB Home shares are owned by insiders. Comparatively, 2.0% of Meritage Homes shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Meritage Homes has a net margin of 12.54% compared to KB Home's net margin of 9.29%. Meritage Homes' return on equity of 17.92% beat KB Home's return on equity.
In the previous week, Meritage Homes had 10 more articles in the media than KB Home. MarketBeat recorded 24 mentions for Meritage Homes and 14 mentions for KB Home. KB Home's average media sentiment score of 0.81 beat Meritage Homes' score of 0.77 indicating that KB Home is being referred to more favorably in the media.
KB Home pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. Meritage Homes pays an annual dividend of $3.00 per share and has a dividend yield of 1.8%. KB Home pays out 10.9% of its earnings in the form of a dividend. Meritage Homes pays out 14.0% 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.
KB Home received 111 more outperform votes than Meritage Homes when rated by MarketBeat users. However, 55.54% of users gave Meritage Homes an outperform vote while only 47.25% of users gave KB Home an outperform vote.
KB Home has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, Meritage Homes has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.
KB Home currently has a consensus target price of $66.11, suggesting a potential upside of 0.77%. Meritage Homes has a consensus target price of $172.67, suggesting a potential upside of 1.88%. Given Meritage Homes' higher possible upside, analysts plainly believe Meritage Homes is more favorable than KB Home.
Meritage Homes has lower revenue, but higher earnings 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.
Summary
Meritage Homes beats KB Home on 12 of the 20 factors compared between the two stocks.
Get KB Home News Delivered to You Automatically
Sign up to receive the latest news and ratings for KBH and its competitors with MarketBeat's FREE daily newsletter.
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.
Related Companies and Tools
