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KBH vs. DFH: Which Stock Should Value Investors Buy Now?
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Investors interested in Building Products - Home Builders stocks are likely familiar with KB Home (KBH - Free Report) and Dream Finders Homes Inc. (DFH - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both KB Home and Dream Finders Homes Inc. are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
KBH currently has a forward P/E ratio of 8.42, while DFH has a forward P/E of 18.52. We also note that KBH has a PEG ratio of 0.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DFH currently has a PEG ratio of 0.47.
Another notable valuation metric for KBH is its P/B ratio of 1.60. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DFH has a P/B of 16.02.
Based on these metrics and many more, KBH holds a Value grade of B, while DFH has a Value grade of C.
Both KBH and DFH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KBH is the superior value option right now.
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KBH vs. DFH: Which Stock Should Value Investors Buy Now?
Investors interested in Building Products - Home Builders stocks are likely familiar with KB Home (KBH - Free Report) and Dream Finders Homes Inc. (DFH - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both KB Home and Dream Finders Homes Inc. are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
KBH currently has a forward P/E ratio of 8.42, while DFH has a forward P/E of 18.52. We also note that KBH has a PEG ratio of 0.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DFH currently has a PEG ratio of 0.47.
Another notable valuation metric for KBH is its P/B ratio of 1.60. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DFH has a P/B of 16.02.
Based on these metrics and many more, KBH holds a Value grade of B, while DFH has a Value grade of C.
Both KBH and DFH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KBH is the superior value option right now.