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KBH vs PHM
Which Stock Would AI Choose? KB Home (KBH) vs. PulteGroup (PHM) Stock Comparison
Key Takeaways
- KBH and PHM are both major U.S. homebuilders facing similar industry headwinds from elevated interest rates and moderating demand.
- KBH reported second-quarter 2026 results in late June with a notable stock rally exceeding 16% on the day, driven by updated guidance despite lower revenues and deliveries year-over-year.
- PHM has demonstrated stronger profitability metrics, including higher net margins and return on equity compared with KBH, according to recent comparative analyses.
- Analyst consensus target prices indicate greater potential upside for PHM than for KBH based on available broker estimates.
- Both companies have engaged in share repurchases, supporting shareholder returns amid fluctuating housing market conditions in recent weeks.
- Market sentiment for the sector remains cautious, with relative performance influenced by broader economic data on mortgage rates and consumer affordability.
Introduction
This comparison examines KBH (KB Home) and PHM (PulteGroup), two publicly traded homebuilders operating in the residential construction sector. Both firms build and sell single-family homes across multiple U.S. markets, making them sensitive to interest rates, housing inventory levels, and consumer confidence. Investors and traders focused on cyclical sectors, value opportunities, or housing-market recovery themes may find this side-by-side review useful for assessing relative positioning, recent momentum, and key differentiators in the current environment.
KBH Overview and Recent Performance
KBH (KB Home) designs and constructs homes primarily for first-time and move-up buyers. In recent market activity, the company reported second-quarter 2026 results showing revenues of $1.11 billion, down 27% year-over-year, with homes delivered declining 23% to 2,395 units. Despite the revenue shortfall, shares rallied sharply following the release, gaining more than 16% on the day amid positive commentary on the built-to-order model and full-year gross margin guidance of 16.1% to 16.5%. As of mid-July 2026, the stock traded near $57.81, reflecting modest year-to-date gains amid sector volatility.
PHM Overview and Recent Performance
PHM (PulteGroup) develops and sells homes targeting entry-level and active-adult segments across a broad geographic footprint. The company has maintained a focus on operational efficiency and capital returns through ongoing share repurchases. In recent market activity, PHM has shown resilience with higher profitability ratios relative to peers. Analyst estimates point to a consensus target price implying notable upside potential. The stock has traded with less pronounced daily swings than some sector counterparts during the same period, supported by steady backlog management and a conservative balance sheet.
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Head-to-Head Comparison
KBH and PHM share exposure to the U.S. housing market but differ in scale, margins, and recent execution. PHM generally posts higher net margins (around 12%) and return on equity compared with KBH, reflecting differences in operational leverage and product mix. Business models overlap significantly, yet PHM’s larger revenue base and backlog provide a buffer during periods of softening orders. Recent momentum favored KBH following its June earnings reaction, while PHM has exhibited more consistent analyst support and valuation metrics. Risk factors for both include interest-rate sensitivity and potential inventory adjustments; KBH showed greater short-term price volatility in recent weeks. Sector sentiment remains tied to macroeconomic data rather than company-specific catalysts alone.
Tickeron AI Verdict
Based on observable factors such as trend consistency, profitability metrics, and analyst positioning in recent market activity, Tickeron’s AI models currently assign a modest edge to PHM. Its stronger margins, higher consensus upside targets, and relatively stable performance profile contribute to this probabilistic assessment. KBH’s post-earnings rally demonstrates responsiveness to guidance updates, yet broader relative stability metrics tilt the evaluation slightly toward PHM. This view reflects data-driven probabilities rather than definitive outcomes.
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 StrongBuy and PHM is a Hold.
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 whilePHM’s FA Score has 1 green FA rating(s).
- KBH’s FA Score: 2 green, 3 red.
- PHM’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 3 TA indicator(s) are bullish while PHM’s TA Score has 5 bullish TA indicator(s).
- KBH’s TA Score: 3 bullish, 5 bearish.
- PHM’s TA Score: 5 bullish, 5 bearish.
Price Growth
KBH (@Homebuilding) experienced а -0.59% price change this week, while PHM (@Homebuilding) price change was -0.46% for the same time period.
The average weekly price growth across all stocks in the @Homebuilding industry was -1.47%. For the same industry, the average monthly price growth was -0.86%, and the average quarterly price growth was -5.52%.
Reported Earning Dates
KBH is expected to report earnings on Sep 23, 2026.
PHM is expected to report earnings on Jul 22, 2026.
Industries' Descriptions
@Homebuilding (-1.47% 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.
| KBH | PHM | KBH / PHM | |
| Capitalization | 3.38B | 23.7B | 14% |
| EBITDA | 368M | 2.79B | 13% |
| Gain YTD | -1.318 | 5.496 | -24% |
| P/E Ratio | 13.42 | 12.02 | 112% |
| Revenue | 5.5B | 16.8B | 33% |
| Total Cash | 201M | N/A | - |
| Total Debt | 2B | 2.28B | 88% |
KBH | PHM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 72 | 35 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 10 Undervalued | 62 Fair valued | |
PROFIT vs RISK RATING 1..100 | 78 | 39 | |
SMR RATING 1..100 | 81 | 54 | |
PRICE GROWTH RATING 1..100 | 57 | 51 | |
P/E GROWTH RATING 1..100 | 11 | 17 | |
SEASONALITY SCORE 1..100 | n/a | 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 (10) in the Homebuilding industry is somewhat better than the same rating for PHM (62). This means that KBH’s stock grew somewhat faster than PHM’s over the last 12 months.
PHM's Profit vs Risk Rating (39) in the Homebuilding industry is somewhat better than the same rating for KBH (78). This means that PHM’s stock grew somewhat faster than KBH’s over the last 12 months.
PHM's SMR Rating (54) in the Homebuilding industry is in the same range as KBH (81). This means that PHM’s stock grew similarly to KBH’s over the last 12 months.
PHM's Price Growth Rating (51) in the Homebuilding industry is in the same range as KBH (57). This means that PHM’s stock grew similarly to KBH’s over the last 12 months.
KBH's P/E Growth Rating (11) in the Homebuilding industry is in the same range as PHM (17). This means that KBH’s stock grew similarly to PHM’s over the last 12 months.
| KBH | PHM | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 72% | 2 days ago 52% |
| Stochastic ODDS (%) | 1 day ago 69% | 2 days ago 70% |
| Momentum ODDS (%) | 1 day ago 73% | 2 days ago 69% |
| MACD ODDS (%) | 1 day ago 65% | 2 days ago 58% |
| TrendWeek ODDS (%) | 1 day ago 69% | 2 days ago 62% |
| TrendMonth ODDS (%) | 1 day ago 68% | 2 days ago 67% |
| Advances ODDS (%) | 6 days ago 69% | 6 days ago 72% |
| Declines ODDS (%) | 2 days ago 65% | 2 days ago 60% |
| BollingerBands ODDS (%) | 1 day ago 63% | 2 days ago 53% |
| Aroon ODDS (%) | 1 day ago 71% | 2 days ago 76% |
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PHM and
Correlation & Price change
A.I.dvisor indicates that over the last year, PHM has been closely correlated with DHI. These tickers have moved in lockstep 92% of the time. This A.I.-generated data suggests there is a high statistical probability that if PHM jumps, then DHI could also see price increases.