Meritage Homes (MTH) Competitors

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

Do analysts prefer TOL or MTH?

Toll Brothers currently has a consensus target price of $147.57, suggesting a potential upside of 33.67%. Meritage Homes has a consensus target price of $106.25, suggesting a potential upside of 44.81%. Given Meritage Homes' higher possible upside, analysts plainly 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)	8 Buy rating(s)	1 Strong Buy rating(s)	2.60
Meritage Homes	0 Sell rating(s)	5 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.44

Which has better earnings and valuation, 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	$10.76B	1.03	$1.57B	$14.53	7.60
Meritage Homes	$6.39B	0.82	$786.19M	$13.07	5.61

Is TOL or MTH 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
Toll Brothers	14.03%	18.32%	10.34%
Meritage Homes	12.29%	15.90%	11.36%

Which has more risk & volatility, TOL or MTH?

Toll Brothers has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Meritage Homes has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500.

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 2.3%. Toll Brothers pays out 6.9% of its earnings in the form of a dividend. Meritage Homes pays out 13.2% 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.

Does the media refer more to TOL or MTH?

In the previous week, Toll Brothers had 21 more articles in the media than Meritage Homes. MarketBeat recorded 29 mentions for Toll Brothers and 8 mentions for Meritage Homes. Meritage Homes' average media sentiment score of 1.37 beat Toll Brothers' score of 0.52 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)	2 Positive mention(s)	17 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Meritage Homes	6 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders & 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, 2.0% 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 company will outperform the market over the long term.

Does the MarketBeat Community prefer TOL or MTH?

Toll Brothers received 215 more outperform votes than Meritage Homes when rated by MarketBeat users. Likewise, 56.87% of users gave Toll Brothers an outperform vote while only 54.33% of users gave Meritage Homes an outperform vote.

Company	Underperform	Outperform
Toll Brothers	Outperform Votes 654 56.87%	Underperform Votes 496 43.13%
Meritage Homes	Outperform Votes 439 54.33%	Underperform Votes 369 45.67%

Summary

Toll Brothers beats Meritage Homes on 14 of the 21 factors compared between the two stocks.