Loma Negra Compania Industrial Argentina (NYSE:LOMA – Get Free Report) and KB Home (NYSE:KBH – Get Free Report) are both construction companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Dividends
Loma Negra Compania Industrial Argentina pays an annual dividend of $0.39 per share and has a dividend yield of 3.4%. KB Home pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Loma Negra Compania Industrial Argentina pays out 46.4% of its earnings in the form of a dividend. KB Home pays out 13.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. KB Home has raised its dividend for 2 consecutive years.
Risk and Volatility
Loma Negra Compania Industrial Argentina has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, KB Home has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Loma Negra Compania Industrial Argentina | $683.24 billion | 0.00 | $169.19 million | $0.84 | 13.46 |
| KB Home | $6.93 billion | 0.56 | $655.02 million | $7.55 | 7.15 |
KB Home has lower revenue, but higher earnings than Loma Negra Compania Industrial Argentina. KB Home is trading at a lower price-to-earnings ratio than Loma Negra Compania Industrial Argentina, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
19.3% of Loma Negra Compania Industrial Argentina shares are held by institutional investors. Comparatively, 96.1% of KB Home shares are held by institutional investors. 3.9% of KB Home shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Loma Negra Compania Industrial Argentina and KB Home’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Loma Negra Compania Industrial Argentina | 14.52% | 12.51% | 6.95% |
| KB Home | 8.47% | 14.02% | 8.14% |
Analyst Ratings
This is a summary of recent ratings for Loma Negra Compania Industrial Argentina and KB Home, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Loma Negra Compania Industrial Argentina | 0 | 0 | 4 | 0 | 3.00 |
| KB Home | 1 | 7 | 3 | 1 | 2.33 |
Loma Negra Compania Industrial Argentina currently has a consensus target price of $14.80, indicating a potential upside of 30.86%. KB Home has a consensus target price of $66.14, indicating a potential upside of 22.47%. Given Loma Negra Compania Industrial Argentina’s stronger consensus rating and higher probable upside, research analysts plainly believe Loma Negra Compania Industrial Argentina is more favorable than KB Home.
Summary
KB Home beats Loma Negra Compania Industrial Argentina on 11 of the 18 factors compared between the two stocks.
About Loma Negra Compania Industrial Argentina
Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and sells cement and its derivatives in Argentina. The company operates through Cement, Masonry Cement and Lime; Concrete; Railroad; Aggregates; and Others segments. It offers masonry cement, aggregates, ready-mix concrete, concrete, and lime to wholesale distributors, concrete producers, industrial customers, and others for use in the construction. The company also provides rail transportation services; and treats and recycles industrial waste for use as fuel and raw material. It markets its products under the Loma Negra, San Martín, Plasticor, Cacique Plus, Cacique Max, Loma Negra Plus, and Lomax brands. The company was founded in 1926 and is based in Buenos Aires, Argentina. Loma Negra Compañía Industrial Argentina Sociedad Anónima is a subsidiary of Intercement Trading E Inversiones Argentina Sociedad Limitada.
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.
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