PulteGroup (NYSE: PHM) is one of 24 publicly-traded companies in the “Homebuilding” industry, but how does it contrast to its rivals? We will compare PulteGroup to similar companies based on the strength of its valuation, profitability, institutional ownership, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares PulteGroup and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PulteGroup 7.77% 14.38% 6.53%
PulteGroup Competitors 9.74% 14.79% 7.94%

Analyst Ratings

This is a summary of recent ratings and recommmendations for PulteGroup and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PulteGroup 2 7 5 0 2.21
PulteGroup Competitors 282 1673 1917 38 2.44

PulteGroup presently has a consensus target price of $28.80, indicating a potential downside of 12.30%. As a group, “Homebuilding” companies have a potential downside of 0.87%. Given PulteGroup’s rivals stronger consensus rating and higher possible upside, analysts clearly believe PulteGroup has less favorable growth aspects than its rivals.

Dividends

PulteGroup pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. PulteGroup pays out 17.9% of its earnings in the form of a dividend. As a group, “Homebuilding” companies pay a dividend yield of 0.7% and pay out 13.4% of their earnings in the form of a dividend. PulteGroup has raised its dividend for 3 consecutive years.

Volatility and Risk

PulteGroup has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, PulteGroup’s rivals have a beta of 1.52, meaning that their average stock price is 52% more volatile than the S&P 500.

Valuation and Earnings

This table compares PulteGroup and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
PulteGroup $7.67 billion $602.70 million 16.34
PulteGroup Competitors $3.83 billion $231.12 million 500.38

PulteGroup has higher revenue and earnings than its rivals. PulteGroup is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

84.2% of PulteGroup shares are owned by institutional investors. Comparatively, 78.0% of shares of all “Homebuilding” companies are owned by institutional investors. 0.7% of PulteGroup shares are owned by company insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

PulteGroup rivals beat PulteGroup on 11 of the 15 factors compared.

PulteGroup Company Profile

PulteGroup, Inc. is a homebuilder in the United States. The Company’s segments include Homebuilding and Financial Services. Its Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the United States and the construction of housing on such land. Its Financial Services operations consist principally of mortgage banking and title operations. The Company conducts its financial services business, through Pulte Mortgage LLC (Pulte Mortgage) and other subsidiaries. Pulte Mortgage arranges financing through the origination of mortgage loans. The Company’s subsidiaries are engaged in the homebuilding business. It offers a product line to meet the needs of homebuyers in its focused markets. Through its brands, which include Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods, the Company offers a range of home designs, including single-family detached, townhouses, condominiums and duplexes.

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