MTH vs. KBH, TPH, MHO, TOL, PHM, NVR, TMHC, DFH, CCS, and CHX
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), PulteGroup (PHM), NVR (NVR), Taylor Morrison Home (TMHC), Dream Finders Homes (DFH), Century Communities (CCS), and ChampionX (CHX). These companies are all part of the "construction" sector.
KB Home (NYSE:KBH) and Meritage Homes (NYSE:MTH) are both mid-cap construction companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation, media sentiment, earnings and community ranking.
KB Home has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Meritage Homes has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.
Meritage Homes has lower revenue, but higher earnings 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.
96.1% of KB Home shares are owned by institutional investors. Comparatively, 98.4% of Meritage Homes shares are owned by institutional investors. 3.5% of KB Home shares are owned by company insiders. Comparatively, 2.0% of Meritage Homes shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Meritage Homes has a net margin of 12.54% compared to Meritage Homes' net margin of 9.29%. KB Home's return on equity of 17.63% beat Meritage Homes' return on equity.
KB Home currently has a consensus target price of $66.11, suggesting a potential upside of 0.71%. Meritage Homes has a consensus target price of $172.67, suggesting a potential upside of 3.67%. Given KB Home's higher probable upside, analysts plainly believe Meritage Homes is more favorable than KB Home.
In the previous week, Meritage Homes had 11 more articles in the media than KB Home. MarketBeat recorded 20 mentions for Meritage Homes and 9 mentions for KB Home. Meritage Homes' average media sentiment score of 0.91 beat KB Home's score of 0.62 indicating that KB Home is being referred to more favorably in the media.
KB Home pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. Meritage Homes pays an annual dividend of $3.00 per share and has a dividend yield of 1.8%. KB Home pays out 10.9% of its earnings in the form of a dividend. Meritage Homes pays out 14.0% 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. KB Home has increased its dividend for 2 consecutive years and Meritage Homes has increased its dividend for 1 consecutive years.
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.
Summary
Meritage Homes beats KB Home on 12 of the 21 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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