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CARG vs KBH

CARG
CarGurus, Inc.
NEUTRAL
Price
$35.24
Market Cap
$3.36B
Sector
Consumer Cyclical
AI Confidence
85%
KBH
KB Home
NEUTRAL
Price
$54.45
Market Cap
$3.41B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
CARG
17.98
KBH
10.51
Forward P/E
CARG
12.09
KBH
12.09
P/B Ratio
CARG
8.94
KBH
0.88
P/S Ratio
CARG
3.71
KBH
0.58
EV/EBITDA
CARG
12.75
KBH
10.08

Profitability

Gross Margin
CARG
92.78%
KBH
18.63%
Operating Margin
CARG
28.67%
KBH
3.03%
Profit Margin
CARG
17.19%
KBH
5.96%
ROE
CARG
42.96%
KBH
8.87%
ROA
CARG
20.6%
KBH
4.3%

Growth

Revenue Growth
CARG
5.5%
KBH
-22.6%
Earnings Growth
CARG
19.5%
KBH
-65.0%

Financial Health

Debt/Equity
CARG
0.51
KBH
0.5
Current Ratio
CARG
2.81
KBH
7.79
Quick Ratio
CARG
2.31
KBH
0.72

Dividends

Dividend Yield
CARG
--
KBH
1.84%
Payout Ratio
CARG
0.0%
KBH
19.31%

AI Verdict

CARG NEUTRAL

CARG shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Strong ROE of 43.0%
Risks
Premium vs Graham Number ($13.19)
KBH NEUTRAL

KB Home exhibits a strong deterministic health profile with a Piotroski F-Score of 8/9, indicating robust operational efficiency and financial stability. While the stock is fundamentally undervalued from a defensive standpoint (Graham Number: $84.69, P/B: 0.88), it is currently battling a severe cyclical downturn characterized by a 65% drop in YoY earnings and a 22.6% decline in revenue. The divergence between the high Graham Number and the low growth-based intrinsic value ($36.26) highlights a conflict between asset value and current earnings momentum. Consequently, the stock is a value play with significant headwinds in growth and technical sentiment.

Strengths
Strong Piotroski F-Score (8/9) indicating high financial health
Trading below book value (P/B 0.88)
Low Debt/Equity ratio (0.50) compared to sector average (1.51)
Risks
Severe earnings contraction (-65% YoY)
Significant revenue decline (-22.6% YoY)
Bearish technical trend (0/100) and negative 6-month price action

Compare Another Pair

CARG vs KBH: Head-to-Head Comparison

This page compares CarGurus, Inc. (CARG) and KB Home (KBH) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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