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KBH vs PHM
Which Stock Would AI Choose? KB Home (KBH) vs. PulteGroup (PHM) Stock Comparison
Key Takeaways
- Both KBH and PHM are large U.S. homebuilders facing softer demand from elevated mortgage rates, but their business mixes and margin profiles differ sharply.
- PulteGroup (PHM) sustains a materially higher home-sale gross margin (24.8% in its latest quarter) and stronger balance sheet than KB Home (KBH), whose gross margin has compressed to roughly 16%.
- PHM skews toward move-up and active-adult buyers (more than 60% of its business), while KBH skews toward entry-level and first-time buyers, the cohort most sensitive to higher rates.
- Tickeron AI Verdict: Based on trend consistency, margin durability, and balance-sheet positioning, Tickeron's AI currently favors PHM over KBH.
- For deeper coverage of the latest developments and intraday action, explore KBH Major News and KBH Today's Price Move, as well as PHM Major News and PHM Today's Price Move.
- To see which trading strategies are best suited to current market conditions, explore Trending AI Robots.
Introduction
Investors and traders tracking the U.S. housing cycle often weigh large homebuilders against one another, and KBH and PHM offer a useful side-by-side. Both are well-known residential builders, yet they target different buyer segments and carry different margin and leverage profiles. This stock comparison is most relevant for those seeking to understand relative performance and market positioning amid a period of elevated borrowing costs, softer traffic, and affordability pressure. By examining each company's recent results, growth drivers, and risk factors, investors can better assess which name may hold an edge in the current environment.
KBH Overview and Recent Performance
KB Home is a national homebuilder best known for its "Built to Order" model, which allows buyers to personalize homes before construction. Its footprint skews toward the West and Southwest, and its customer base leans heavily toward entry-level and first-time buyers. In its most recent quarter, KBH reported earnings of $1.05 per share and revenue of roughly $1.30 billion, with home deliveries down about 19% and net orders down 12% year over year. Management cited higher mortgage rates, weaker consumer confidence, and affordability pressure as key headwinds, and the cancellation rate edged up to 18% of gross orders.
Margin compression has been a defining theme in recent weeks, with housing gross margin near 16%, well below prior-year levels. The stock has underperformed the broader market, declining roughly 15% over the past 30 days and about 27% over the trailing 90 days. That said, KBH's backlog grew year over year for the first time in four years, and its Built to Order mix has helped shorten build times and reduce unsold inventory, factors that could support a gradual margin recovery if demand stabilizes.
PHM Overview and Recent Performance
PulteGroup is one of America's largest and most diversified homebuilders, operating in more than 45 markets through brands such as Pulte Homes, Centex, Del Webb, and DiVosta. More than 60% of its business comes from move-up and active-adult buyers, many of whom pay cash and are less sensitive to mortgage-rate swings. In its latest quarter, PHM posted earnings of $2.53 per share on revenue of about $3.9 billion, with closings down 9% and net new orders down 6% year over year. Despite softer volume, home-sale gross margin held at 24.8%, and the active-adult segment posted an 11% increase in orders.
Recent market activity has shown a mixed picture: shares initially slid after the earnings release but subsequently rebounded, reflecting investor focus on margin resilience and capital returns. PulteGroup's balance sheet remains a standout, with roughly $1.4 billion in cash, a debt-to-capital ratio of about 12%, and a net debt-to-capital ratio of only 3%. The company also repurchased $350 million of stock in the quarter, underscoring its financial flexibility in a challenging housing backdrop.
Trending AI Robots
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Head-to-Head Comparison
The clearest contrast between the two companies is buyer mix. KBH leans on entry-level and first-time buyers, who depend heavily on 30-year mortgages and retreat fastest when rates rise. PHM tilts toward move-up and active-adult buyers, many of whom use cash and provide a more durable demand base. This difference shows up directly in margins: PHM's home-sale gross margin of 24.8% is roughly nine percentage points above KBH's level, giving PulteGroup more cushion against incentives and price concessions.
Scale and diversification also differ. PulteGroup's operations span more than 45 markets and multiple buyer segments, while KB Home's geographic and customer concentration is narrower, particularly on the West Coast and in the first-time segment. On the balance sheet, PHM holds a substantial cash position with minimal net debt, whereas KBH carries a debt-to-capital ratio above 35%. Both companies face shared risks — rising mortgage rates, inflation, and softening traffic — but PHM's diversified platform and lower leverage provide more resilience, while KBH's Built to Order model and growing backlog offer a potential recovery lever if affordability improves.
Tickeron AI Verdict
Weighing observable factors such as trend consistency, margin durability, balance-sheet strength, and buyer-segment positioning, Tickeron's AI would currently lean toward PHM over KBH. PulteGroup's higher gross margin, cash-rich and lightly leveraged balance sheet, and less rate-sensitive customer base give it a comparatively stronger market positioning in the present rate environment. KB Home's lower valuation and improving backlog present a credible contrarian case, but its first-time-buyer skew and thinner margins suggest greater near-term vulnerability. This is a probabilistic assessment based on current data rather than a definitive prediction, and relative positioning can shift as housing 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 PHM is a Buy.
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.
PHM in upward trend: 10-day moving average moved above 50-day moving average on November 02, 2026
The 10-day moving average for PHM crossed bullishly above the 50-day moving average on November 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 12 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 75%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 21, 2026. You may want to consider a long position or call options on PHM as a result. In 61 of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 66%.
The Moving Average Convergence Divergence (MACD) for PHM just turned positive on October 16, 2026. Looking at past instances where PHM's MACD turned positive, the stock continued to rise in 35 of 49 cases over the following month. The odds of a continued upward trend are 71%.
PHM moved above its 50-day moving average on October 23, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +5.57% 3-day Advance, the price is estimated to grow further. Considering data from situations where PHM advanced for three days, in 212 of 305 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
Bearish Trend Analysis
The 10-day RSI Indicator for PHM moved out of overbought territory on November 06, 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 43 similar instances where the indicator moved out of overbought territory. In 24 of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at 56%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 39 of 62 cases where PHM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 63%.
The 50-day moving average for PHM moved below the 200-day moving average on October 07, 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 PHM 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 60%.
PHM 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 PHM 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 11 (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 18 (best 1 - 100 worst), indicating outstanding price growth. PHM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 29 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock better than average.
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 57 (best 1 - 100 worst), indicating strong sales and a 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.
The Tickeron Valuation Rating of 75 (best 1 - 100 worst) indicates that the company is slightly 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 (1.939) is normal, around the industry mean (1.910). P/E Ratio (13.437) is within average values for comparable stocks, (10.592). Projected Growth (PEG Ratio) (0.995) is also within normal values, averaging (1.217). Dividend Yield (0.008) settles around the average of (0.019) among similar stocks. P/S Ratio (1.393) is also within normal values, averaging (24.205).
KBH | PHM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 28 | 38 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 50 Fair valued | 75 Overvalued | |
PROFIT vs RISK RATING 1..100 | 77 | 29 | |
SMR RATING 1..100 | 79 | 57 | |
PRICE GROWTH RATING 1..100 | 46 | 18 | |
P/E GROWTH RATING 1..100 | 12 | 11 | |
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 in the same range as PHM (75). This means that KBH’s stock grew similarly to PHM’s over the last 12 months.
PHM's Profit vs Risk Rating (29) in the Homebuilding industry is somewhat better than the same rating for KBH (77). This means that PHM’s stock grew somewhat faster than KBH’s over the last 12 months.
PHM's SMR Rating (57) in the Homebuilding industry is in the same range as KBH (79). This means that PHM’s stock grew similarly to KBH’s over the last 12 months.
PHM's Price Growth Rating (18) in the Homebuilding industry is in the same range as KBH (46). This means that PHM’s stock grew similarly to KBH’s over the last 12 months.
PHM's P/E Growth Rating (11) in the Homebuilding industry is in the same range as KBH (12). This means that PHM’s stock grew similarly to KBH’s over the last 12 months.
| KBH | PHM | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 72% | 2 days ago 56% |
| Stochastic ODDS (%) | 2 days ago 71% | 2 days ago 63% |
| Momentum ODDS (%) | 2 days ago 65% | 2 days ago 66% |
| MACD ODDS (%) | 2 days ago 64% | 2 days ago 71% |
| TrendWeek ODDS (%) | 2 days ago 69% | 2 days ago 74% |
| TrendMonth ODDS (%) | 2 days ago 68% | 2 days ago 73% |
| Advances ODDS (%) | 10 days ago 68% | 10 days ago 70% |
| Declines ODDS (%) | 6 days ago 69% | 6 days ago 60% |
| BollingerBands ODDS (%) | 2 days ago 75% | 2 days ago 61% |
| Aroon ODDS (%) | 2 days ago 76% | 2 days ago 77% |
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 PHM’s FA Score has 3 green FA rating(s).
- KBH’s FA Score: 1 green, 4 red.
- PHM’s FA Score: 3 green, 2 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 PHM’s TA Score has 5 bullish TA indicator(s).
- KBH’s TA Score: 5 bullish, 5 bearish.
- PHM’s TA Score: 5 bullish, 6 bearish.
Price Growth
KBH (@Homebuilding) experienced а +3.15% price change this week, while PHM (@Homebuilding) price change was +2.93% 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.
PHM is expected to report earnings on Feb 02, 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.
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