MTH vs. KBH, TPH, MHO, TOL, NVR, PHM, TMHC, DFH, CCS, and IBP
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), NVR (NVR), PulteGroup (PHM), Taylor Morrison Home (TMHC), Dream Finders Homes (DFH), Century Communities (CCS), and Installed Building Products (IBP). 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 superior investment? We will contrast the two companies based on the strength of their community ranking, profitability, analyst recommendations, media sentiment, earnings, institutional ownership, dividends, valuation and risk.
KB Home presently has a consensus price target of $66.30, suggesting a potential downside of 9.24%. Meritage Homes has a consensus price target of $178.25, suggesting a potential downside of 2.60%. Given KB Home's stronger consensus rating and higher probable upside, analysts plainly believe Meritage Homes is more favorable than KB Home.
KB Home pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. Meritage Homes pays an annual dividend of $3.00 per share and has a dividend yield of 1.6%. KB Home pays out 13.6% 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 raised its dividend for 2 consecutive years and Meritage Homes has raised its dividend for 1 consecutive years.
KB Home has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Meritage Homes has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.
96.1% of KB Home shares are owned by institutional investors. Comparatively, 98.4% of Meritage Homes shares are owned by institutional investors. 4.4% of KB Home shares are owned by insiders. Comparatively, 2.0% of Meritage Homes shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
KB Home received 111 more outperform votes than Meritage Homes when rated by MarketBeat users. However, 55.40% of users gave Meritage Homes an outperform vote while only 47.21% of users gave KB Home an outperform vote.
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.
In the previous week, KB Home had 9 more articles in the media than Meritage Homes. MarketBeat recorded 21 mentions for KB Home and 12 mentions for Meritage Homes. KB Home's average media sentiment score of 0.81 beat Meritage Homes' score of 0.66 indicating that Meritage Homes is being referred to more favorably in the news media.
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.
Summary
Meritage Homes beats KB Home on 13 of the 21 factors compared between the two stocks.
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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