KBH vs. MTH, TPH, MHO, TOL, TMHC, DFH, CCS, LPX, THO, and BCC
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), Louisiana-Pacific (LPX), THOR Industries (THO), and Boise Cascade (BCC). 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 stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, community ranking, earnings, valuation and media sentiment.
KB Home has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Meritage Homes has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.
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.
In the previous week, KB Home had 4 more articles in the media than Meritage Homes. MarketBeat recorded 15 mentions for KB Home and 11 mentions for Meritage Homes. Meritage Homes' average media sentiment score of 0.94 beat KB Home's score of 0.60 indicating that Meritage Homes is being referred to more favorably in the news media.
KB Home received 111 more outperform votes than Meritage Homes when rated by MarketBeat users. However, 55.47% of users gave Meritage Homes an outperform vote while only 47.21% of users gave KB Home an outperform vote.
96.1% of KB Home shares are held by institutional investors. Comparatively, 98.4% of Meritage Homes shares are held by institutional investors. 4.4% of KB Home shares are held by insiders. Comparatively, 2.0% of Meritage Homes shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments 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 17.63% beat KB Home's return on equity.
KB Home pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. Meritage Homes pays an annual dividend of $3.00 per share and has a dividend yield of 1.7%. KB Home pays out 13.6% 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 presently has a consensus price target of $66.30, suggesting a potential downside of 5.41%. Meritage Homes has a consensus price target of $178.25, suggesting a potential downside of 1.02%. Given Meritage Homes' stronger consensus rating and higher probable upside, analysts plainly believe Meritage Homes is more favorable than KB Home.
Summary
Meritage Homes beats KB Home on 13 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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