MTH vs. PHM, NVR, TOL, KBH, TPH, MHO, CVCO, HOV, BZH, and DHI
Should you be buying Meritage Homes stock or one of its competitors? The main competitors of Meritage Homes include PulteGroup (PHM), NVR (NVR), Toll Brothers (TOL), KB Home (KBH), Tri Pointe Homes (TPH), M/I Homes (MHO), Cavco Industries (CVCO), Hovnanian Enterprises (HOV), Beazer Homes USA (BZH), and D.R. Horton (DHI). These companies are all part of the "homebuilding" industry.
Meritage Homes (NYSE:MTH) and PulteGroup (NYSE:PHM) are both construction companies, but which is the superior business? We will contrast the two companies based on the strength of their community ranking, dividends, analyst recommendations, risk, valuation, media sentiment, institutional ownership, earnings and profitability.
Meritage Homes presently has a consensus target price of $178.25, suggesting a potential upside of 1.08%. PulteGroup has a consensus target price of $113.07, suggesting a potential downside of 3.62%. Given Meritage Homes' higher possible upside, research analysts clearly believe Meritage Homes is more favorable than PulteGroup.
Meritage Homes pays an annual dividend of $3.00 per share and has a dividend yield of 1.7%. PulteGroup pays an annual dividend of $0.80 per share and has a dividend yield of 0.7%. Meritage Homes pays out 14.0% of its earnings in the form of a dividend. PulteGroup pays out 6.4% 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.
Meritage Homes has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, PulteGroup has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.
In the previous week, PulteGroup had 5 more articles in the media than Meritage Homes. MarketBeat recorded 13 mentions for PulteGroup and 8 mentions for Meritage Homes. Meritage Homes' average media sentiment score of 1.06 beat PulteGroup's score of 0.89 indicating that Meritage Homes is being referred to more favorably in the media.
PulteGroup has higher revenue and earnings than Meritage Homes. Meritage Homes is trading at a lower price-to-earnings ratio than PulteGroup, indicating that it is currently the more affordable of the two stocks.
PulteGroup has a net margin of 16.63% compared to Meritage Homes' net margin of 12.54%. PulteGroup's return on equity of 25.81% beat Meritage Homes' return on equity.
98.4% of Meritage Homes shares are held by institutional investors. Comparatively, 89.9% of PulteGroup shares are held by institutional investors. 2.0% of Meritage Homes shares are held by insiders. Comparatively, 0.8% of PulteGroup shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
PulteGroup received 225 more outperform votes than Meritage Homes when rated by MarketBeat users. Likewise, 60.80% of users gave PulteGroup an outperform vote while only 55.33% of users gave Meritage Homes an outperform vote.
Summary
PulteGroup beats Meritage Homes on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MTH and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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