Seek Returns logo

BBY vs. PHM: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at BBY and PHM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolBBYPHM
Company NameBest Buy Co., Inc.PulteGroup, Inc.
CountryUnited StatesUnited States
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS IndustrySpecialty RetailHousehold Durables
Market Capitalization15.78 billion USD22.84 billion USD
ExchangeNYSENYSE
Listing DateApril 18, 1985March 17, 1980
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of BBY and PHM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

BBY vs. PHM: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolBBYPHM
5-Day Price Return-3.11%-1.50%
13-Week Price Return5.71%-8.02%
26-Week Price Return2.64%11.20%
52-Week Price Return-16.52%-7.15%
Month-to-Date Return-7.82%-1.25%
Year-to-Date Return-11.75%8.70%
10-Day Avg. Volume3.03M1.72M
3-Month Avg. Volume3.39M2.16M
3-Month Volatility35.17%27.23%
Beta1.441.35

Profitability

Return on Equity (TTM)

BBY

27.37%

Specialty Retail Industry

Max
68.49%
Q3
37.12%
Median
19.64%
Q1
12.17%
Min
-17.19%

BBY’s Return on Equity of 27.37% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

PHM

21.12%

Household Durables Industry

Max
26.77%
Q3
17.22%
Median
11.18%
Q1
6.35%
Min
-7.31%

In the upper quartile for the Household Durables industry, PHM’s Return on Equity of 21.12% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

BBY vs. PHM: A comparison of their Return on Equity (TTM) against their respective Specialty Retail and Household Durables industry benchmarks.

Net Profit Margin (TTM)

BBY

1.87%

Specialty Retail Industry

Max
21.04%
Q3
11.79%
Median
6.37%
Q1
2.40%
Min
-4.37%

Falling into the lower quartile for the Specialty Retail industry, BBY’s Net Profit Margin of 1.87% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

PHM

14.93%

Household Durables Industry

Max
16.03%
Q3
9.13%
Median
6.61%
Q1
3.40%
Min
-4.24%

A Net Profit Margin of 14.93% places PHM in the upper quartile for the Household Durables industry, signifying strong profitability and more effective cost management than most of its peers.

BBY vs. PHM: A comparison of their Net Profit Margin (TTM) against their respective Specialty Retail and Household Durables industry benchmarks.

Operating Profit Margin (TTM)

BBY

2.48%

Specialty Retail Industry

Max
32.33%
Q3
16.59%
Median
9.34%
Q1
3.86%
Min
-10.53%

BBY’s Operating Profit Margin of 2.48% is in the lower quartile for the Specialty Retail industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

PHM

19.51%

Household Durables Industry

Max
20.79%
Q3
12.10%
Median
9.44%
Q1
5.22%
Min
-3.50%

An Operating Profit Margin of 19.51% places PHM in the upper quartile for the Household Durables industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

BBY vs. PHM: A comparison of their Operating Profit Margin (TTM) against their respective Specialty Retail and Household Durables industry benchmarks.

Profitability at a Glance

SymbolBBYPHM
Return on Equity (TTM)27.37%21.12%
Return on Assets (TTM)5.09%15.00%
Net Profit Margin (TTM)1.87%14.93%
Operating Profit Margin (TTM)2.48%19.51%
Gross Profit Margin (TTM)22.54%27.15%

Financial Strength

Current Ratio (MRQ)

BBY

1.04

Specialty Retail Industry

Max
2.77
Q3
1.86
Median
1.40
Q1
1.13
Min
0.73

BBY’s Current Ratio of 1.04 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

PHM

5.08

Household Durables Industry

Max
6.43
Q3
3.68
Median
2.54
Q1
1.23
Min
0.75

PHM’s Current Ratio of 5.08 is in the upper quartile for the Household Durables industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

BBY vs. PHM: A comparison of their Current Ratio (MRQ) against their respective Specialty Retail and Household Durables industry benchmarks.

Debt-to-Equity Ratio (MRQ)

BBY

0.43

Specialty Retail Industry

Max
3.76
Q3
1.71
Median
0.58
Q1
0.21
Min
0.00

BBY’s Debt-to-Equity Ratio of 0.43 is typical for the Specialty Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

PHM

0.16

Household Durables Industry

Max
1.77
Q3
0.83
Median
0.34
Q1
0.18
Min
0.00

Falling into the lower quartile for the Household Durables industry, PHM’s Debt-to-Equity Ratio of 0.16 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

BBY vs. PHM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Specialty Retail and Household Durables industry benchmarks.

Interest Coverage Ratio (TTM)

BBY

256.43

Specialty Retail Industry

Max
96.69
Q3
45.12
Median
14.13
Q1
3.66
Min
-36.00

With an Interest Coverage Ratio of 256.43, BBY demonstrates a superior capacity to service its debt, placing it well above the typical range for the Specialty Retail industry. This stems from either robust earnings or a conservative debt load.

PHM

41.50

Household Durables Industry

Max
140.40
Q3
77.14
Median
24.53
Q1
5.69
Min
-17.01

PHM’s Interest Coverage Ratio of 41.50 is positioned comfortably within the norm for the Household Durables industry, indicating a standard and healthy capacity to cover its interest payments.

BBY vs. PHM: A comparison of their Interest Coverage Ratio (TTM) against their respective Specialty Retail and Household Durables industry benchmarks.

Financial Strength at a Glance

SymbolBBYPHM
Current Ratio (MRQ)1.045.08
Quick Ratio (MRQ)0.360.50
Debt-to-Equity Ratio (MRQ)0.430.16
Interest Coverage Ratio (TTM)256.4341.50

Growth

Revenue Growth

BBY vs. PHM: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

BBY vs. PHM: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

BBY

5.13%

Specialty Retail Industry

Max
6.98%
Q3
3.28%
Median
1.12%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 5.13%, BBY offers a more attractive income stream than most of its peers in the Specialty Retail industry, signaling a strong commitment to shareholder returns.

PHM

0.76%

Household Durables Industry

Max
9.27%
Q3
3.94%
Median
1.84%
Q1
0.03%
Min
0.00%

PHM’s Dividend Yield of 0.76% is consistent with its peers in the Household Durables industry, providing a dividend return that is standard for its sector.

BBY vs. PHM: A comparison of their Dividend Yield (TTM) against their respective Specialty Retail and Household Durables industry benchmarks.

Dividend Payout Ratio (TTM)

BBY

103.47%

Specialty Retail Industry

Max
192.64%
Q3
82.72%
Median
26.67%
Q1
0.00%
Min
0.00%

BBY’s Dividend Payout Ratio of 103.47% is in the upper quartile for the Specialty Retail industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

PHM

6.65%

Household Durables Industry

Max
154.55%
Q3
65.87%
Median
40.54%
Q1
6.74%
Min
0.00%

PHM’s Dividend Payout Ratio of 6.65% is in the lower quartile for the Household Durables industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

BBY vs. PHM: A comparison of their Dividend Payout Ratio (TTM) against their respective Specialty Retail and Household Durables industry benchmarks.

Dividend at a Glance

SymbolBBYPHM
Dividend Yield (TTM)5.13%0.76%
Dividend Payout Ratio (TTM)103.47%6.65%

Valuation

Price-to-Earnings Ratio (TTM)

BBY

20.19

Specialty Retail Industry

Max
41.01
Q3
27.38
Median
22.35
Q1
14.15
Min
6.07

BBY’s P/E Ratio of 20.19 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

PHM

8.77

Household Durables Industry

Max
33.05
Q3
20.97
Median
12.60
Q1
9.92
Min
6.71

In the lower quartile for the Household Durables industry, PHM’s P/E Ratio of 8.77 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

BBY vs. PHM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Specialty Retail and Household Durables industry benchmarks.

Price-to-Sales Ratio (TTM)

BBY

0.38

Specialty Retail Industry

Max
5.30
Q3
2.51
Median
1.30
Q1
0.50
Min
0.09

In the lower quartile for the Specialty Retail industry, BBY’s P/S Ratio of 0.38 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

PHM

1.31

Household Durables Industry

Max
2.29
Q3
1.31
Median
0.86
Q1
0.56
Min
0.15

PHM’s P/S Ratio of 1.31 aligns with the market consensus for the Household Durables industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

BBY vs. PHM: A comparison of their Price-to-Sales Ratio (TTM) against their respective Specialty Retail and Household Durables industry benchmarks.

Price-to-Book Ratio (MRQ)

BBY

5.15

Specialty Retail Industry

Max
16.26
Q3
9.05
Median
4.10
Q1
1.91
Min
0.55

BBY’s P/B Ratio of 5.15 is within the conventional range for the Specialty Retail industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

PHM

2.03

Household Durables Industry

Max
2.77
Q3
2.08
Median
1.44
Q1
1.07
Min
0.58

PHM’s P/B Ratio of 2.03 is within the conventional range for the Household Durables industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

BBY vs. PHM: A comparison of their Price-to-Book Ratio (MRQ) against their respective Specialty Retail and Household Durables industry benchmarks.

Valuation at a Glance

SymbolBBYPHM
Price-to-Earnings Ratio (TTM)20.198.77
Price-to-Sales Ratio (TTM)0.381.31
Price-to-Book Ratio (MRQ)5.152.03
Price-to-Free Cash Flow Ratio (TTM)8.1214.87