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KBH vs NVR
Which Stock Would AI Choose? KB Home (KBH) vs. NVR, Inc. (NVR) Stock Comparison
Key Takeaways
- Both KBH and NVR operate in the cyclical homebuilding sector, challenged by elevated mortgage rates and affordability constraints in recent market activity.
- KBH trades at a lower price-to-earnings (P/E) ratio of approximately 10.7 compared to NVR's 16.3, appealing to value-oriented investors.
- NVR demonstrates superior return on equity (ROE) of 33% and profit margins around 13%, reflecting stronger operational efficiency.
- Recent quarters showed revenue pressures for both, with KBH posting an earnings miss and guidance cut amid softer demand.
- Year-to-date gains are modest, with NVR slightly ahead at 2.7% versus KBH's 1.7%.
- NVR's asset-light model reduces inventory risk, contributing to lower volatility (beta of 1.07 vs. KBH's 1.50).
Introduction
KB Home (KBH) and NVR, Inc. (NVR) are prominent players in the U.S. homebuilding industry, focusing on single-family residences amid a housing market grappling with high interest rates and limited affordability. This stock comparison analyzes their business models, recent performance, and relative positioning, offering insights for traders monitoring cyclical sectors and investors assessing value in homebuilders. With mortgage rates hovering above 6.5%, both stocks reflect broader sentiment shifts, making this head-to-head relevant for those evaluating sector rotation or long-term housing trends.
KBH Overview and Recent Performance
KB Home (KBH) designs and constructs single-family homes targeting entry-level and first-time buyers across key U.S. markets. In recent market activity, the stock has experienced volatility, trading around $55 with a market capitalization of approximately $3.5 billion. Shares pulled back following a quarterly earnings report that missed expectations, revealing a revenue decline and reduced home delivery outlook due to persistent affordability challenges and elevated cancellation rates. Sentiment has been influenced by sector-wide pressures from high mortgage rates, though some recovery occurred amid broader homebuilder upticks. Key metrics include a trailing P/E of 10.7, EPS of $5.18, and ROE of 9%, underscoring a value profile amid softer demand.
NVR Overview and Recent Performance
NVR, Inc. (NVR) builds and sells homes under Ryan Homes and NVHomes brands, employing an asset-light strategy by purchasing finished lots rather than owning land inventories. The stock trades near $7,100, supported by a $19.8 billion market cap. Recent weeks have shown relative stability, with year-to-date gains of 2.7% despite mixed analyst notes on margins and valuation. Upcoming earnings are anticipated amid ongoing housing headwinds, but strong balance sheet metrics—including $1.9 billion in cash and debt-to-equity of 28%—bolster resilience. Profitability stands out with a P/E of 16.3, EPS of $436, and ROE of 33%, reflecting efficient operations in a tough environment.
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Head-to-Head Comparison
In business models, KBH relies on land ownership for vertical integration, exposing it to inventory risks, while NVR's lot-purchase approach minimizes balance sheet strain and enhances flexibility. Growth drivers for both hinge on housing starts and rate relief, but recent momentum favors NVR's steadier trajectory versus KBH's post-earnings dip. Risk factors include affordability for KBH and valuation concerns for NVR, with the latter's lower beta signaling reduced volatility. Sector exposure is identical in residential construction, but NVR exhibits stronger market sentiment through higher analyst targets and superior profitability trade-offs.
Tickeron AI Verdict
Tickeron’s AI models currently lean toward NVR based on consistent trends, superior stability, robust profitability metrics, and a fortified balance sheet positioning it better amid housing uncertainties. While KBH offers compelling valuation, NVR's lower risk profile and operational edge suggest higher probability of outperformance in the near term.
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 Disclaimers and Limitations.
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 NVR is a StrongBuy.
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 undervalued. 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 2 FA rating(s) are green whileNVR’s FA Score has 1 green FA rating(s).
- KBH’s FA Score: 2 green, 3 red.
- NVR’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 7 TA indicator(s) are bullish while NVR’s TA Score has 6 bullish TA indicator(s).
- KBH’s TA Score: 7 bullish, 2 bearish.
- NVR’s TA Score: 6 bullish, 4 bearish.
Price Growth
KBH (@Homebuilding) experienced а -2.06% price change this week, while NVR (@Homebuilding) price change was +0.28% for the same time period.
The average weekly price growth across all stocks in the @Homebuilding industry was -1.24%. For the same industry, the average monthly price growth was +9.74%, and the average quarterly price growth was +8.59%.
Reported Earning Dates
KBH is expected to report earnings on Jun 23, 2026.
NVR is expected to report earnings on Jul 28, 2026.
Industries' Descriptions
@Homebuilding (-1.24% 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.
| KBH | NVR | KBH / NVR | |
| Capitalization | 3.3B | 17.2B | 19% |
| EBITDA | 470M | 1.67B | 28% |
| Gain YTD | -5.666 | -12.892 | 44% |
| P/E Ratio | 10.14 | 15.51 | 65% |
| Revenue | 5.92B | 9.82B | 60% |
| Total Cash | 202M | 1.68B | 12% |
| Total Debt | 1.92B | 1.05B | 183% |
KBH | NVR | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 71 | 32 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 9 Undervalued | 69 Overvalued | |
PROFIT vs RISK RATING 1..100 | 80 | 74 | |
SMR RATING 1..100 | 76 | 31 | |
PRICE GROWTH RATING 1..100 | 47 | 52 | |
P/E GROWTH RATING 1..100 | 23 | 49 | |
SEASONALITY SCORE 1..100 | n/a | 90 |
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 (9) in the Homebuilding industry is somewhat better than the same rating for NVR (69). This means that KBH’s stock grew somewhat faster than NVR’s over the last 12 months.
NVR's Profit vs Risk Rating (74) in the Homebuilding industry is in the same range as KBH (80). This means that NVR’s stock grew similarly to KBH’s over the last 12 months.
NVR's SMR Rating (31) in the Homebuilding industry is somewhat better than the same rating for KBH (76). This means that NVR’s stock grew somewhat faster than KBH’s over the last 12 months.
KBH's Price Growth Rating (47) in the Homebuilding industry is in the same range as NVR (52). This means that KBH’s stock grew similarly to NVR’s over the last 12 months.
KBH's P/E Growth Rating (23) in the Homebuilding industry is in the same range as NVR (49). This means that KBH’s stock grew similarly to NVR’s over the last 12 months.
| KBH | NVR | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 65% | 2 days ago 54% |
| Stochastic ODDS (%) | 2 days ago 68% | 2 days ago 54% |
| Momentum ODDS (%) | 2 days ago 73% | 2 days ago 65% |
| MACD ODDS (%) | 2 days ago 73% | 2 days ago 72% |
| TrendWeek ODDS (%) | 2 days ago 68% | 2 days ago 59% |
| TrendMonth ODDS (%) | 2 days ago 68% | 2 days ago 65% |
| Advances ODDS (%) | 22 days ago 68% | 16 days ago 60% |
| Declines ODDS (%) | 9 days ago 66% | 9 days ago 54% |
| BollingerBands ODDS (%) | N/A | 2 days ago 49% |
| Aroon ODDS (%) | 2 days ago 78% | 2 days ago 64% |
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NVR and
Correlation & Price change
A.I.dvisor indicates that over the last year, NVR has been closely correlated with PHM. These tickers have moved in lockstep 79% of the time. This A.I.-generated data suggests there is a high statistical probability that if NVR jumps, then PHM could also see price increases.