Analyzing Everus (NYSE:ECG) and KB Home (NYSE:KBH)

KB Home (NYSE:KBH) and Everus (NYSE:ECG) are both mid-cap construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for KB Home and Everus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KB Home	3	6	3	0	2.00
Everus	0	2	2	0	2.50

KB Home presently has a consensus price target of $79.17, indicating a potential upside of 19.23%. Everus has a consensus price target of $67.67, indicating a potential downside of 4.13%. Given KB Home’s higher probable upside, equities research analysts plainly believe KB Home is more favorable than Everus.

Profitability

This table compares KB Home and Everus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KB Home	9.31%	15.69%	9.11%
Everus	N/A	N/A	N/A

Earnings and Valuation

This table compares KB Home and Everus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KB Home	$6.60 billion	0.74	$590.18 million	$7.80	8.51
Everus	$2.73 billion	1.32	$137.23 million	N/A	N/A

KB Home has higher revenue and earnings than Everus.

Institutional & Insider Ownership

96.1% of KB Home shares are held by institutional investors. 4.4% of KB Home shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

KB Home beats Everus on 9 of the 11 factors compared between the two stocks.

About KB Home

KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers. The company also provides financial services, such as insurance products and title services, as well as mortgage banking services, including residential consumer mortgage loans to homebuyers. It has operations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas, and Washington. The company was formerly known as Kaufman and Broad Home Corporation and changed its name to KB Home in January 2001. KB Home was founded in 1957 and is based in Los Angeles, California.

About Everus

Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.