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KBH vs MHO
Which Stock Would AI Choose? KB Home (KBH) vs. M/I Homes (MHO) Stock Comparison
Key Takeaways
- Both KBH and MHO are single-family homebuilders navigating elevated mortgage rates, affordability pressure, and softening demand, but their financial positioning differs meaningfully.
- MHO holds a stronger balance sheet, with record shareholders' equity of roughly $3.3 billion and an 18% homebuilding debt-to-capital ratio, versus thinner margins and higher leverage at KBH.
- Gross margin divergence is notable: MHO reported a roughly 20.9% gross margin in its latest quarter, compared with about 15.2% for KBH, reflecting sharper pricing pressure at KB Home.
- Tickeron AI Verdict: Between the two, Tickeron's AI currently favors MHO for its relatively stronger balance sheet, wider margins, and more constructive analyst positioning.
- For deeper context on either name, explore KBH Major News and KBH Today's Price Move, as well as MHO Major News and MHO Today's Price Move.
- To see how AI-driven systems are trading these and other stocks, explore Trending AI Robots.
Introduction
Investors tracking the homebuilding sector often weigh large, geographically diversified builders against smaller, regionally focused operators. KBH (KB Home) and MHO (M/I Homes) offer a useful contrast in that regard. Both build single-family homes across multiple U.S. markets and are exposed to the same macro forces, including elevated mortgage rates and weaker buyer confidence. Yet their scale, margin profiles, and capital structures differ considerably. This stock comparison examines recent relative performance, business fundamentals, and market positioning to help traders and investors understand where these two homebuilders currently stand and which one AI-driven analysis views more favorably in the present environment.
KBH Overview and Recent Performance
KB Home is a Los Angeles-based homebuilder recognized for its built-to-order model, which lets buyers personalize their homes and has become a growing share of net orders. The company operates across a broad national footprint and complements its homebuilding business with mortgage and financial services. In recent weeks, KBH has reflected the broader challenges in housing. Management has cited higher mortgage rates, affordability concerns, and weakened consumer confidence as factors weighing on traffic and conversion. The company's latest quarterly results showed a double-digit year-over-year decline in deliveries and a lower average selling price, while its housing gross margin contracted sharply as price reductions and higher relative land costs took hold. Although KBH beat consensus estimates in its most recent report and has maintained an active share-repurchase program, sell-side sentiment has turned cautious, with several firms trimming price targets and the analyst consensus settling at a "Hold." The stock trades at a lower valuation multiple than some peers, which some investors interpret as a discount reflecting near-term margin and demand uncertainty.
MHO Overview and Recent Performance
M/I Homes, headquartered in Columbus, Ohio, is a single-family homebuilder serving roughly 17 markets across the Midwest, Texas, Florida, North Carolina, and Tennessee, spanning first-time, move-up, and luxury buyers. In recent market activity, MHO has also contended with a cooling housing environment. Its latest quarter showed a modest year-over-year decline in revenue and earnings, with deliveries and new contracts each easing slightly, while its average closing price also fell. Management described conditions as "increasingly difficult," pointing to higher mortgage rates and weaker demand. Even so, MHO has maintained a comparatively robust financial position: gross margins have held above 20%, shareholders' equity reached a record level, and the company carries no borrowings under its credit facility, with a low homebuilding debt-to-capital ratio of 18%. These stability factors have supported a more constructive analyst stance, with the consensus rating at "Buy" and an average price target well above the stock's recent trading range.
Trending AI Robots
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Head-to-Head Comparison
The clearest contrast between KBH and MHO lies in profitability and financial resilience rather than top-line trajectory, given that both face the same demand slowdown. MHO has preserved a wider gross margin and a stronger, lower-leverage balance sheet, which provides greater flexibility to weather extended softness and fund share repurchases without straining liquidity. KBH, by contrast, has experienced more pronounced margin compression and higher selling, general, and administrative expense ratios relative to revenue, even as its built-to-order model supports sequential backlog improvement. In terms of scale, KB Home is the larger, more diversified builder, while M/I Homes offers a more concentrated regional profile and a notably lower earnings multiple. On market sentiment, analyst coverage leans "Buy" for MHO versus a more neutral "Hold" for KBH, reflecting differing views on each company's margin durability and near-term catalysts.
Tickeron AI Verdict
Based on observable factors such as margin stability, balance-sheet strength, and relative market positioning, Tickeron's AI would currently lean toward MHO as the more favored of the two tickers. M/I Homes' wider gross margins, record equity base, low debt-to-capital ratio, and more constructive analyst consensus suggest a comparatively steadier footing through the current housing downturn. KB Home's built-to-order strategy and sequential backlog recovery are meaningful positives, but its sharper margin compression and more cautious sell-side outlook introduce greater near-term uncertainty. This assessment is probabilistic and reflects current conditions rather than a definitive prediction; relative positioning between these two homebuilders could shift as housing demand and financing conditions evolve.
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 MHO 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 28 of 35 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 80%.
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 58 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 65%.
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 32 of 50 cases over the following month. The odds of a continued upward trend are 64%.
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 9 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 69%.
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%.
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 26 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 72%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 41 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 71%.
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 69%.
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.
The Aroon Indicator for KBH entered a downward trend on October 23, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying 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 46 (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 Profit vs. Risk Rating rating for this company is 77 (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 67, placing this stock worse than average.
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.
MHO's RSI Oscillator climbs out of oversold territory
The RSI Indicator for MHO moved out of oversold territory on October 22, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 17 similar instances when the indicator left oversold territory. In 15 of the 17 cases the stock moved higher. This puts the odds of a move higher at 88%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on MHO as a result. In 58 of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 68%.
The Moving Average Convergence Divergence (MACD) for MHO just turned positive on October 26, 2026. Looking at past instances where MHO's MACD turned positive, the stock continued to rise in 33 of 50 cases over the following month. The odds of a continued upward trend are 66%.
Following a +1.77% 3-day Advance, the price is estimated to grow further. Considering data from situations where MHO advanced for three days, in 234 of 316 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 41 of 59 cases where MHO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 69%.
MHO moved below its 50-day moving average on November 10, 2026 date and that indicates a change from an upward trend to a downward trend.
The 50-day moving average for MHO moved below the 200-day moving average on October 27, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MHO 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 65%.
MHO 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.
The Aroon Indicator for MHO entered a downward trend on November 02, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying 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 Valuation Rating of 42 (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 (1.031) is normal, around the industry mean (1.910). P/E Ratio (10.813) is within average values for comparable stocks, (10.592). Projected Growth (PEG Ratio) (0.050) is also within normal values, averaging (1.217). Dividend Yield (0.001) settles around the average of (0.019) among similar stocks. P/S Ratio (0.880) is also within normal values, averaging (24.205).
The Tickeron Profit vs. Risk Rating rating for this company is 43 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 51 (best 1 - 100 worst), indicating fairly steady price growth. MHO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 70 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable 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.
KBH | MHO | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 28 | 28 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 50 Fair valued | 42 Fair valued | |
PROFIT vs RISK RATING 1..100 | 77 | 43 | |
SMR RATING 1..100 | 79 | 70 | |
PRICE GROWTH RATING 1..100 | 46 | 51 | |
P/E GROWTH RATING 1..100 | 12 | 12 | |
SEASONALITY SCORE 1..100 | 50 | n/a |
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.
MHO's Valuation (42) in the Homebuilding industry is in the same range as KBH (50). This means that MHO’s stock grew similarly to KBH’s over the last 12 months.
MHO's Profit vs Risk Rating (43) in the Homebuilding industry is somewhat better than the same rating for KBH (77). This means that MHO’s stock grew somewhat faster than KBH’s over the last 12 months.
MHO's SMR Rating (70) in the Homebuilding industry is in the same range as KBH (79). This means that MHO’s stock grew similarly to KBH’s over the last 12 months.
KBH's Price Growth Rating (46) in the Homebuilding industry is in the same range as MHO (51). This means that KBH’s stock grew similarly to MHO’s over the last 12 months.
KBH's P/E Growth Rating (12) in the Homebuilding industry is in the same range as MHO (12). This means that KBH’s stock grew similarly to MHO’s over the last 12 months.
| KBH | MHO | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 72% | 2 days ago 88% |
| Stochastic ODDS (%) | 2 days ago 71% | 2 days ago 69% |
| Momentum ODDS (%) | 2 days ago 65% | 2 days ago 68% |
| MACD ODDS (%) | 2 days ago 64% | 2 days ago 66% |
| TrendWeek ODDS (%) | 2 days ago 69% | 2 days ago 75% |
| TrendMonth ODDS (%) | 2 days ago 68% | 2 days ago 74% |
| Advances ODDS (%) | 10 days ago 68% | 16 days ago 74% |
| Declines ODDS (%) | 6 days ago 69% | 6 days ago 65% |
| BollingerBands ODDS (%) | 2 days ago 75% | 2 days ago 59% |
| Aroon ODDS (%) | 2 days ago 76% | 2 days ago 70% |
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 MHO’s FA Score has 1 green FA rating(s).
- KBH’s FA Score: 1 green, 4 red.
- MHO’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 MHO’s TA Score has 4 bullish TA indicator(s).
- KBH’s TA Score: 5 bullish, 5 bearish.
- MHO’s TA Score: 4 bullish, 6 bearish.
Price Growth
KBH (@Homebuilding) experienced а +3.15% price change this week, while MHO (@Homebuilding) price change was +1.07% 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.
MHO is expected to report earnings on Feb 03, 2027.
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.
MHO and
Correlation & Price change
A.I.dvisor indicates that over the last year, MHO has been closely correlated with MTH. These tickers have moved in lockstep 86% of the time. This A.I.-generated data suggests there is a high statistical probability that if MHO jumps, then MTH could also see price increases.
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