KB Home (NYSE:KBH – Get Free Report) and Zepp Health (NYSE:ZEPP – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.
Profitability
This table compares KB Home and Zepp Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KB Home | 4.94% | 7.67% | 4.37% |
| Zepp Health | -14.70% | -15.64% | -6.03% |
Insider & Institutional Ownership
96.1% of KB Home shares are held by institutional investors. Comparatively, 52.6% of Zepp Health shares are held by institutional investors. 4.7% of KB Home shares are held by insiders. Comparatively, 36.0% of Zepp Health shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Valuation and Earnings
This table compares KB Home and Zepp Health”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KB Home | $6.24 billion | 0.56 | $428.79 million | $2.87 | 19.94 |
| Zepp Health | $258.90 million | 0.26 | -$40.07 million | ($2.52) | -1.83 |
KB Home has higher revenue and earnings than Zepp Health. Zepp Health is trading at a lower price-to-earnings ratio than KB Home, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for KB Home and Zepp Health, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KB Home | 1 | 11 | 4 | 0 | 2.19 |
| Zepp Health | 1 | 0 | 1 | 0 | 2.00 |
KB Home currently has a consensus target price of $60.17, indicating a potential upside of 5.11%. Zepp Health has a consensus target price of $56.28, indicating a potential upside of 1,117.13%. Given Zepp Health’s higher probable upside, analysts plainly believe Zepp Health is more favorable than KB Home.
Summary
KB Home beats Zepp Health on 11 of the 14 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 Zepp Health
Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.
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