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 better stock? We will contrast the two businesses based on the strength of their media sentiment, dividends, profitability, community ranking, risk, analyst recommendations, valuation, earnings and institutional ownership.
98.4% of Meritage Homes shares are owned by institutional investors. Comparatively, 89.9% of PulteGroup shares are owned by institutional investors. 2.0% of Meritage Homes shares are owned by company insiders. Comparatively, 0.8% of PulteGroup shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds 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.
Meritage Homes presently has a consensus target price of $178.25, suggesting a potential upside of 5.49%. PulteGroup has a consensus target price of $113.07, suggesting a potential upside of 1.25%. Given Meritage Homes' higher probable upside, equities analysts plainly believe Meritage Homes is more favorable than PulteGroup.
In the previous week, Meritage Homes and Meritage Homes both had 7 articles in the media. Meritage Homes' average media sentiment score of 1.47 beat PulteGroup's score of 1.15 indicating that Meritage Homes is being referred to more favorably in the media.
Meritage Homes has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500. Comparatively, PulteGroup has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.
Meritage Homes pays an annual dividend of $3.00 per share and has a dividend yield of 1.8%. 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.
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.
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.
Summary
PulteGroup beats Meritage Homes on 12 of the 19 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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