KB Home (KBH) vs M/I Homes, Inc. (MHO)

KB Home and M/I Homes, Inc. are both Residential Construction companies. M/I Homes, Inc. is the larger, with a market value of $3.2B against $2.7B — 1.2× the size. M/I Homes, Inc. trades at the lower P/E: 10.3× against 12.0×. M/I Homes, Inc. grew revenue faster over the last twelve months: −4.99% against −20.8%. M/I Homes, Inc. has the higher net margin (7.44% vs 4.38%) and the higher return on invested capital (7.22% vs 4.60%). Across the 22 metrics below, M/I Homes, Inc. leads on 18 and KB Home on 4.

Valuation

Metric KBH MHO Residential Construction median
P/E 11.96 10.25 13.21
P/S 0.51 0.75 0.96
P/B 0.69 0.99 1.07
Price to free cash flow 91.90 15.58 15.63
EV/EBITDA 13.31 8.15 10.53
EV/Sales 0.80 0.80 1.27
Earnings yield 8.36% 9.75% 7.24%
Free cash flow yield 1.09% 6.42% 6.23%

Profitability

Metric KBH MHO Residential Construction median
Gross margin 13.69% 22.60% 22.30%
Operating margin 5.18% 9.32% 9.03%
Net margin 4.38% 7.44% 7.30%
Free cash flow margin 0.55% 4.81% 8.46%
Return on equity 5.89% 10.06% 9.84%
Return on assets 3.25% 6.61% 7.43%
Return on invested capital 4.60% 7.22% 6.90%

Growth

Metric KBH MHO Residential Construction median
Revenue growth (TTM) (20.80%) (4.99%) (7.66%)
EPS growth (last fiscal year) (27.22%) (25.22%) (25.22%)
Revenue growth, 5-year CAGR 8.31% 7.72% 8.74%
Net income growth, 5-year CAGR 7.65% 10.93% 8.43%

Health

Metric KBH MHO Residential Construction median
Debt to equity 0.00 0.29 0.20
Current ratio 2.07 7.65 3.56
Net debt to EBITDA 2.56 0.54 0.28

Dividend

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

Size

Metric KBH MHO Residential Construction median
Market cap 2.65b 3.19b 3.93b

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