KB Home (KBH) vs Legacy Housing Corporation (LEGH)

KB Home and Legacy Housing Corporation are both Residential Construction companies. KB Home is the larger, with a market value of $2.7B against $647.9M — 4.1× the size. KB Home trades at the lower P/E: 12.0× against 12.7×. Legacy Housing Corporation grew revenue faster over the last twelve months: −2.62% against −20.8%. Legacy Housing Corporation has the higher net margin (28.6% vs 4.38%) and the higher return on invested capital (6.90% vs 4.60%). Across the 21 metrics below, Legacy Housing Corporation leads on 13 and KB Home on 8.

Valuation

Metric KBH LEGH Residential Construction median
P/E 11.96 12.74 13.21
P/S 0.51 3.63 0.96
P/B 0.69 1.16 1.07
Price to free cash flow 91.90 16.42 15.63
EV/EBITDA 13.31 10.37 10.53
EV/Sales 0.80 3.47 1.27
Earnings yield 8.36% 7.85% 7.24%
Free cash flow yield 1.09% 6.09% 6.23%

Profitability

Metric KBH LEGH Residential Construction median
Gross margin 13.69% 48.75% 22.30%
Operating margin 5.18% 32.79% 9.03%
Net margin 4.38% 28.56% 7.30%
Free cash flow margin 0.55% 22.10% 8.46%
Return on equity 5.89% 9.53% 9.84%
Return on assets 3.25% 8.78% 7.43%
Return on invested capital 4.60% 6.90% 6.90%

Growth

Metric KBH LEGH Residential Construction median
Revenue growth (TTM) (20.80%) (2.62%) (7.66%)
EPS growth (last fiscal year) (27.22%) (29.84%) (25.22%)
Revenue growth, 5-year CAGR 8.31% (1.42%) 8.74%
Net income growth, 5-year CAGR 7.65% 1.93% 8.43%

Health

Metric KBH LEGH Residential Construction median
Debt to equity 0.00 0.00 0.20
Current ratio 2.07 3.56 3.56
Net debt to EBITDA 2.56 (0.15) 0.28

Dividend

Metric KBH LEGH Residential Construction median
Dividend yield 2.31% — 1.29%
Payout ratio 0.28 — 0.17

Size

Metric KBH LEGH Residential Construction median
Market cap 2.65b 647.85m 3.93b

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