MTH vs. KBH, TPH, MHO, TOL, TMHC, DFH, CCS, THO, BCC, and LPX
Should you be buying Meritage Homes stock or one of its competitors? The main competitors of Meritage Homes include KB Home (KBH), Tri Pointe Homes (TPH), M/I Homes (MHO), Toll Brothers (TOL), Taylor Morrison Home (TMHC), Dream Finders Homes (DFH), Century Communities (CCS), THOR Industries (THO), Boise Cascade (BCC), and Louisiana-Pacific (LPX). These companies are all part of the "construction" sector.
Meritage Homes (NYSE:MTH) and KB Home (NYSE:KBH) are both mid-cap construction companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, media sentiment, institutional ownership, dividends, valuation, earnings and community ranking.
Meritage Homes pays an annual dividend of $3.00 per share and has a dividend yield of 1.8%. KB Home pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. Meritage Homes pays out 14.0% of its earnings in the form of a dividend. KB Home pays out 10.9% 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.
98.4% of Meritage Homes shares are owned by institutional investors. Comparatively, 96.1% of KB Home shares are owned by institutional investors. 2.0% of Meritage Homes shares are owned by company insiders. Comparatively, 3.5% of KB Home shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
KB Home received 111 more outperform votes than Meritage Homes when rated by MarketBeat users. However, 55.54% of users gave Meritage Homes an outperform vote while only 47.25% of users gave KB Home an outperform vote.
Meritage Homes has a net margin of 12.54% compared to KB Home's net margin of 9.29%. Meritage Homes' return on equity of 17.63% beat KB Home's return on equity.
Meritage Homes has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, KB Home has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.
In the previous week, Meritage Homes had 15 more articles in the media than KB Home. MarketBeat recorded 26 mentions for Meritage Homes and 11 mentions for KB Home. KB Home's average media sentiment score of 0.91 beat Meritage Homes' score of 0.57 indicating that KB Home is being referred to more favorably in the news media.
Meritage Homes currently has a consensus price target of $172.67, suggesting a potential upside of 3.47%. KB Home has a consensus price target of $66.11, suggesting a potential upside of 1.08%. Given Meritage Homes' higher possible upside, equities analysts clearly believe Meritage Homes is more favorable than KB Home.
Meritage Homes has higher earnings, but lower revenue than KB Home. Meritage Homes is trading at a lower price-to-earnings ratio than KB Home, indicating that it is currently the more affordable of the two stocks.
Summary
Meritage Homes beats KB Home on 12 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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