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KBH vs LEN
Which Stock Would AI Choose? KB Home (KBH) vs. Lennar (LEN) Stock Comparison
Key Takeaways
- Both KBH and LEN are U.S. homebuilders navigating the same affordability and elevated mortgage-rate environment, but their recent demand trends have diverged.
- LEN reported an 18.5% year-over-year jump in net new orders in its latest quarter, while KBH posted a roughly 10% decline, highlighting a contrast in near-term sales momentum.
- Both companies are absorbing margin compression, yet LEN's larger scale, diversified segments, and land-light operating model offer comparatively more stability.
- Tickeron AI Verdict: Based on order momentum, backlog stability, and relative positioning, Tickeron's AI would currently favor LEN over KBH.
- For deeper coverage of each company's developments, explore the KBH Major News and KBH Today's Price Move pages, as well as LEN Major News and LEN Today's Price Move.
- To see which automated strategies are currently best suited to market conditions, explore the curated Trending AI Robots page.
Introduction
KB Home (KBH) and Lennar (LEN) are two of the most recognized names in U.S. residential construction, yet they operate with very different business models, scales, and geographic footprints. This stock comparison is designed for investors and traders who want to understand how these homebuilders are positioned amid a housing market constrained by affordability pressures and elevated mortgage rates. Because both companies face similar macroeconomic forces, their relative performance often comes down to execution, demand trends, and balance-sheet strategy. Comparing their recent results side by side helps clarify which name currently offers the more consistent fundamental and technical profile in a challenging sector.
KBH Overview and Recent Performance
KB Home is a mid-cap homebuilder focused primarily on first-time and first move-up buyers, using a "Built-to-Order" model that lets customers personalize homes before construction. In its most recent fiscal quarter, the company reported revenues of approximately $1.69 billion, down about 15% year over year, with homes delivered declining 9% to 3,619 and the average selling price falling 7% to roughly $465,600. While adjusted earnings per share (EPS) came in slightly above consensus, the housing gross margin compressed to about 17.8% excluding inventory charges, down from 20.9% a year earlier.
Sentiment around KBH has been pressured in recent weeks by a declining order book: net orders fell roughly 10% year over year, and the backlog shrank sharply. Management has cited lower consumer confidence, affordability concerns, and elevated mortgage rates as persistent headwinds. The company has responded with disciplined pricing, a renewed emphasis on its built-to-order strategy, and capital returns through share repurchases and dividends, but the shrinking backlog and cautious near-term guidance have weighed on relative performance.
LEN Overview and Recent Performance
Lennar is one of the largest homebuilders in the United States, operating across a broad national footprint and serving affordable, move-up, and active-adult segments through an "Everything's Included" pricing model. In its latest quarter, the company generated approximately $9.37 billion in revenue, down about 6% year over year but above consensus estimates, while home deliveries rose 4% to 23,034. The average selling price declined 10% to about $386,000, and the gross margin on home sales fell to 17% from 22.1% a year earlier.
Despite missing consensus on adjusted EPS, LEN showed a notable bright spot in demand: net new orders increased 18.5% year over year to 20,018 homes, and the company's backlog held up relatively well at roughly $5.2 billion. Lennar's "land-light" strategy, which reduces owned-land exposure and improves cash-flow efficiency, and its diversified financial services and multifamily operations have helped buffer some of the sector-wide margin pressure. However, investors have remained cautious about the company's conservative near-term guidance and its use of sales incentives.
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Head-to-Head Comparison
The core contrast between these two names is scale and diversification. LEN is a large-cap, vertically integrated builder with a broad national presence, a land-light model, and ancillary financial services and multifamily segments. KBH is a smaller, more focused operator concentrated on personalized, built-to-order homes for entry-level and move-up buyers. That difference shows up in demand: LEN grew new orders 18.5% year over year in its most recent quarter, while KBH saw orders fall roughly 10%.
Both companies are experiencing similar gross-margin compression and are using incentives to sustain sales, but KBH's backlog contracted far more sharply, which limits near-term revenue visibility. LEN's larger scale, higher inventory turnover, and more stable backlog provide a relatively more resilient earnings base. On the risk side, both remain exposed to mortgage rates and consumer confidence, though LEN's diversified model may cushion sector shocks more effectively than KBH's narrower focus.
Tickeron AI Verdict
Weighing observable factors such as order momentum, backlog stability, scale, and relative positioning, Tickeron's AI would likely favor LEN over KBH in the current environment. Lennar's 18.5% growth in net new orders contrasts favorably with KB Home's declining order volume, and its larger, more diversified operating model tends to produce more consistent trend signals during a cyclical downturn. While neither stock is immune to affordability pressures and margin compression, the comparative strength in demand and a more stable backlog give LEN a more constructive probabilistic profile at this stage of the housing cycle.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is KBH is a Hold and LEN is a Hold.
KBH in upward trend: price rose above 50-day moving average on November 02, 2026
KBH moved above its 50-day moving average on November 02, 2026 date and that indicates a change from a downward trend to an upward trend. In 27 of 35 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 77%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 22, 2026. You may want to consider a long position or call options on KBH as a result. In 54 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 61%.
The Moving Average Convergence Divergence (MACD) for KBH just turned positive on October 16, 2026. Looking at past instances where KBH's MACD turned positive, the stock continued to rise in 34 of 50 cases over the following month. The odds of a continued upward trend are 68%.
The 10-day moving average for KBH crossed bullishly above the 50-day moving average on November 04, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 62%.
Following a +6.30% 3-day Advance, the price is estimated to grow further. Considering data from situations where KBH advanced for three days, in 207 of 305 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
The Aroon Indicator entered an Uptrend today. In 173 of 233 cases where KBH Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 74%.
Bearish Trend Analysis
The 10-day RSI Indicator for KBH moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In 23 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 64%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 40 of 58 cases where KBH's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 69%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KBH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 68%.
KBH broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 12 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 48 (best 1 - 100 worst), indicating steady price growth. KBH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.812) is normal, around the industry mean (1.910). P/E Ratio (12.071) is within average values for comparable stocks, (10.592). Projected Growth (PEG Ratio) (0.280) is also within normal values, averaging (1.217). Dividend Yield (0.020) settles around the average of (0.019) among similar stocks. P/S Ratio (0.573) is also within normal values, averaging (24.205).
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 79 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 79 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KBH’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock worse than average.
LEN in upward trend: 10-day moving average moved above 50-day moving average on October 28, 2026
The 10-day moving average for LEN crossed bullishly above the 50-day moving average on October 28, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 86%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 19, 2026. You may want to consider a long position or call options on LEN as a result. In 64 of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 75%.
The Moving Average Convergence Divergence (MACD) for LEN just turned positive on October 19, 2026. Looking at past instances where LEN's MACD turned positive, the stock continued to rise in 38 of 53 cases over the following month. The odds of a continued upward trend are 72%.
LEN moved above its 50-day moving average on October 22, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +6.51% 3-day Advance, the price is estimated to grow further. Considering data from situations where LEN advanced for three days, in 203 of 313 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
The Aroon Indicator entered an Uptrend today. In 144 of 203 cases where LEN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 71%.
Bearish Trend Analysis
The 10-day RSI Indicator for LEN moved out of overbought territory on November 03, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In 19 of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at 61%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 46 of 70 cases where LEN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 66%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LEN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 67%.
LEN broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 27 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 49 (best 1 - 100 worst), indicating steady price growth. LEN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 78 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 96 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.989) is normal, around the industry mean (1.910). P/E Ratio (13.909) is within average values for comparable stocks, (10.592). LEN's Projected Growth (PEG Ratio) (11.302) is very high in comparison to the industry average of (1.217). Dividend Yield (0.023) settles around the average of (0.019) among similar stocks. P/S Ratio (0.594) is also within normal values, averaging (24.205).
The Tickeron Profit vs. Risk Rating rating for this company is 97 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LEN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock worse than average.
KBH | LEN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 28 | 28 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 50 Fair valued | 96 Overvalued | |
PROFIT vs RISK RATING 1..100 | 79 | 97 | |
SMR RATING 1..100 | 79 | 78 | |
PRICE GROWTH RATING 1..100 | 48 | 49 | |
P/E GROWTH RATING 1..100 | 12 | 27 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
KBH's Valuation (50) in the Homebuilding industry is somewhat better than the same rating for LEN (96). This means that KBH’s stock grew somewhat faster than LEN’s over the last 12 months.
KBH's Profit vs Risk Rating (79) in the Homebuilding industry is in the same range as LEN (97). This means that KBH’s stock grew similarly to LEN’s over the last 12 months.
LEN's SMR Rating (78) in the Homebuilding industry is in the same range as KBH (79). This means that LEN’s stock grew similarly to KBH’s over the last 12 months.
KBH's Price Growth Rating (48) in the Homebuilding industry is in the same range as LEN (49). This means that KBH’s stock grew similarly to LEN’s over the last 12 months.
KBH's P/E Growth Rating (12) in the Homebuilding industry is in the same range as LEN (27). This means that KBH’s stock grew similarly to LEN’s over the last 12 months.
| KBH | LEN | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 64% | 1 day ago 61% |
| Stochastic ODDS (%) | 1 day ago 69% | 1 day ago 66% |
| Momentum ODDS (%) | 1 day ago 61% | 1 day ago 75% |
| MACD ODDS (%) | 1 day ago 68% | 1 day ago 72% |
| TrendWeek ODDS (%) | 1 day ago 71% | 1 day ago 69% |
| TrendMonth ODDS (%) | 1 day ago 67% | 1 day ago 68% |
| Advances ODDS (%) | 10 days ago 68% | 10 days ago 65% |
| Declines ODDS (%) | 1 day ago 68% | 1 day ago 67% |
| BollingerBands ODDS (%) | 1 day ago 73% | 1 day ago 63% |
| Aroon ODDS (%) | 1 day ago 74% | 1 day ago 71% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
KBH’s FA Score shows that 1 FA rating(s) are green while LEN’s FA Score has 1 green FA rating(s).
- KBH’s FA Score: 1 green, 4 red.
- LEN’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
KBH’s TA Score shows that 5 TA indicator(s) are bullish while LEN’s TA Score has 5 bullish TA indicator(s).
- KBH’s TA Score: 5 bullish, 5 bearish.
- LEN’s TA Score: 5 bullish, 5 bearish.
Price Growth
KBH (@Homebuilding) experienced а +3.15% price change this week, while LEN (@Homebuilding) price change was +0.66% for the same time period.
The average weekly price growth across all stocks in the @Homebuilding industry was -6.47%. For the same industry, the average monthly price growth was +5.55%, and the average quarterly price growth was +10.32%.
Reported Earning Dates
KBH is expected to report earnings on Dec 17, 2026.
LEN is expected to report earnings on Dec 15, 2026.
Industries' Descriptions
@Homebuilding (-6.47% weekly)Homebuilding includes companies residential home construction companies, renovators and repair firms. The companies may be building single-family or multifamily homes, condominiums or mobile homes. Over the five years to 2019, the Home Builders industry is estimated to have grown at an annualized rate of 2.5% to reach $89.4 billion, (including expected growth of 2.6% in 2019), according to a study by IbisWorld. After having suffered one of its worst crises a decade ago during the last macroeconomic recession–which had much of its origins in U.S. real estate – the homebuilding industry has been recovering steadily so far. Higher disposable incomes and improving economic activity have bolstered consumers’ purchases of homes. While revenue of the Home Builders industry remains well below its prerecession high, demand growth estimates show promise.
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KBH and
Correlation & Price change
A.I.dvisor indicates that over the last year, KBH has been closely correlated with MTH. These tickers have moved in lockstep 90% of the time. This A.I.-generated data suggests there is a high statistical probability that if KBH jumps, then MTH could also see price increases.
LEN and
Correlation & Price change
A.I.dvisor indicates that over the last year, LEN has been closely correlated with DHI. These tickers have moved in lockstep 89% of the time. This A.I.-generated data suggests there is a high statistical probability that if LEN jumps, then DHI could also see price increases.