Head to Head Contrast: KB Home (KBH) & Century Communities (CCS)

KB Home (NYSE: KBH) and Century Communities (NYSE:CCS) are both construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Volatility and Risk

Get KB Home alerts:

KB Home has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Century Communities has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for KB Home and Century Communities, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KB Home	5	10	1	0	1.75
Century Communities	0	0	6	0	3.00

KB Home presently has a consensus price target of $30.07, indicating a potential upside of 13.29%. Century Communities has a consensus price target of $36.92, indicating a potential upside of 18.70%. Given Century Communities’ stronger consensus rating and higher probable upside, analysts plainly believe Century Communities is more favorable than KB Home.

Dividends

KB Home pays an annual dividend of $0.10 per share and has a dividend yield of 0.4%. Century Communities does not pay a dividend. KB Home pays out 5.4% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares KB Home and Century Communities’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KB Home	$4.37 billion	0.53	$180.59 million	$1.85	14.35
Century Communities	$1.41 billion	0.66	$50.29 million	$2.87	10.84

KB Home has higher revenue and earnings than Century Communities. Century Communities is trading at a lower price-to-earnings ratio than KB Home, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares KB Home and Century Communities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KB Home	2.15%	11.16%	4.11%
Century Communities	3.87%	12.68%	5.19%

Institutional and Insider Ownership

88.4% of KB Home shares are owned by institutional investors. Comparatively, 79.2% of Century Communities shares are owned by institutional investors. 8.6% of KB Home shares are owned by company insiders. Comparatively, 13.9% of Century Communities shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Century Communities beats KB Home on 10 of the 16 factors compared between the two stocks.

About KB Home

KB Home operates as a homebuilding company in the United States. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, and active adult homebuyers. The company also provides property and casualty insurance, as well as earthquake, flood, and personal property insurance to its homebuyers; title services; and mortgage banking services, including residential mortgage loan originations to its homebuyers. It has operations in California, Arizona, Nevada, Colorado, Texas, Florida, and North Carolina, The company was formerly known as Kaufman and Broad Home Corporation and changed its name to KB Home in January 2001. KB Home was founded in 1957 and is headquartered in Los Angeles, California.

About Century Communities

Century Communities, Inc. engages in the development, design, construction, marketing, and sale of single-family attached and detached homes in metropolitan areas in California, Colorado, Georgia, Nevada, North Carolina, South Carolina, Tennessee, Texas, Utah, and Washington. It is also involved in the entitlement and development of the underlying land; and the provision of mortgage services and title services to its home buyers. The company sells homes through its sales representatives, as well as through independent real estate brokers. Century Communities, Inc. was founded in 2000 and is headquartered in Greenwood Village, Colorado.