Meritage Homes (MTH) Competitors

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

Which has more risk and volatility, MTH or TOL?

Meritage Homes has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Toll Brothers has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Does the media favor MTH or TOL?

In the previous week, Toll Brothers had 25 more articles in the media than Meritage Homes. MarketBeat recorded 39 mentions for Toll Brothers and 14 mentions for Meritage Homes. Toll Brothers' average media sentiment score of 0.81 beat Meritage Homes' score of 0.70 indicating that Toll Brothers is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Meritage Homes	6 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Positive
Toll Brothers	17 Very Positive mention(s)	1 Positive mention(s)	16 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Positive

Does the MarketBeat Community believe in MTH or TOL?

Toll Brothers received 216 more outperform votes than Meritage Homes when rated by MarketBeat users. Likewise, 56.76% of users gave Toll Brothers an outperform vote while only 54.33% of users gave Meritage Homes an outperform vote.

Company	Underperform	Outperform
Meritage Homes	Outperform Votes 439 54.33%	Underperform Votes 369 45.67%
Toll Brothers	Outperform Votes 655 56.76%	Underperform Votes 499 43.24%

Do institutionals and insiders hold more shares of MTH or TOL?

98.4% of Meritage Homes shares are held by institutional investors. Comparatively, 91.8% of Toll Brothers shares are held by institutional investors. 2.0% of Meritage Homes shares are held by insiders. Comparatively, 1.5% of Toll Brothers shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Is MTH or TOL a better dividend stock?

Meritage Homes pays an annual dividend of $1.72 per share and has a dividend yield of 2.7%. Toll Brothers pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. Meritage Homes pays out 13.2% of its earnings in the form of a dividend. Toll Brothers pays out 6.9% 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.

Do analysts rate MTH or TOL?

Meritage Homes currently has a consensus target price of $106.25, suggesting a potential upside of 64.63%. Toll Brothers has a consensus target price of $144.79, suggesting a potential upside of 53.85%. 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
Meritage Homes	0 Sell rating(s)	5 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.44
Toll Brothers	1 Sell rating(s)	5 Hold rating(s)	8 Buy rating(s)	1 Strong Buy rating(s)	2.60

Is MTH or TOL more profitable?

Toll Brothers has a net margin of 14.03% compared to Meritage Homes' net margin of 12.29%. Toll Brothers' return on equity of 18.32% beat Meritage Homes' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Meritage Homes	12.29%	15.90%	11.36%
Toll Brothers	14.03%	18.32%	10.34%

Which has stronger valuation & earnings, MTH or TOL?

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
Meritage Homes	$6.39B	0.73	$786.19M	$13.07	4.94
Toll Brothers	$10.76B	0.87	$1.57B	$14.53	6.48

Summary

Toll Brothers beats Meritage Homes on 15 of the 21 factors compared between the two stocks.