Meritage Homes (MTH) Competitors

Toll Brothers (NYSE:TOL) and Meritage Homes (NYSE:MTH) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, media sentiment, earnings and risk.

Which has preferable valuation and earnings, TOL or MTH?

Toll Brothers has higher revenue and earnings than Meritage Homes. Meritage Homes is trading at a lower price-to-earnings ratio than Toll Brothers, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toll Brothers	$10.85B	1.06	$1.57B	$13.48	8.68
Meritage Homes	$6.40B	0.79	$786.19M	$12.23	5.78

Is TOL or MTH a better dividend stock?

Toll Brothers pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. Meritage Homes pays an annual dividend of $1.72 per share and has a dividend yield of 2.4%. Toll Brothers pays out 7.4% of its earnings in the form of a dividend. Meritage Homes pays out 14.1% 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. Toll Brothers has raised its dividend for 5 consecutive years and Meritage Homes has raised its dividend for 2 consecutive years.

Is TOL or MTH more profitable?

Toll Brothers has a net margin of 12.95% compared to Meritage Homes' net margin of 11.50%. Toll Brothers' return on equity of 17.87% beat Meritage Homes' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Toll Brothers	12.95%	17.87%	10.12%
Meritage Homes	11.50%	14.28%	10.01%

Which has more volatility & risk, TOL or MTH?

Toll Brothers has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Meritage Homes has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Does the media prefer TOL or MTH?

In the previous week, Toll Brothers had 13 more articles in the media than Meritage Homes. MarketBeat recorded 21 mentions for Toll Brothers and 8 mentions for Meritage Homes. Meritage Homes' average media sentiment score of 0.85 beat Toll Brothers' score of 0.76 indicating that Meritage Homes is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Toll Brothers	9 Very Positive mention(s)	1 Positive mention(s)	9 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Meritage Homes	4 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts prefer TOL or MTH?

Toll Brothers currently has a consensus target price of $141.46, suggesting a potential upside of 20.96%. Meritage Homes has a consensus target price of $97.72, suggesting a potential upside of 38.36%. Given Meritage Homes' higher probable upside, analysts clearly believe Meritage Homes is more favorable than Toll Brothers.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toll Brothers	1 Sell rating(s)	5 Hold rating(s)	7 Buy rating(s)	1 Strong Buy rating(s)	2.57
Meritage Homes	0 Sell rating(s)	5 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.50

Do insiders and institutionals have more ownership in TOL or MTH?

91.8% of Toll Brothers shares are owned by institutional investors. Comparatively, 98.4% of Meritage Homes shares are owned by institutional investors. 1.5% of Toll Brothers shares are owned by company insiders. Comparatively, 2.2% of Meritage Homes shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Toll Brothers beats Meritage Homes on 14 of the 20 factors compared between the two stocks.