Critical Contrast: Meritage Corporation (MTH) versus NVR (NVR)

Meritage Corporation (NYSE: MTH) and NVR (NYSE:NVR) are both construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Valuation & Earnings

This table compares Meritage Corporation and NVR’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Meritage Corporation $3.12 billion 0.53 $241.92 million $3.64 11.17
NVR $6.12 billion 1.71 $800.07 million $126.57 22.12

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

Risk & Volatility

Meritage Corporation has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, NVR has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Meritage Corporation and NVR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meritage Corporation 2 6 1 0 1.89
NVR 0 4 1 0 2.20

Meritage Corporation presently has a consensus price target of $40.29, indicating a potential downside of 0.90%. NVR has a consensus price target of $2,645.00, indicating a potential downside of 5.52%. Given Meritage Corporation’s higher probable upside, analysts plainly believe Meritage Corporation is more favorable than NVR.

Profitability

This table compares Meritage Corporation and NVR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meritage Corporation 4.94% 10.74% 5.16%
NVR 8.67% 37.43% 18.93%

Insider & Institutional Ownership

98.2% of Meritage Corporation shares are owned by institutional investors. Comparatively, 79.8% of NVR shares are owned by institutional investors. 5.6% of Meritage Corporation shares are owned by insiders. Comparatively, 11.3% of NVR shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

NVR beats Meritage Corporation on 10 of the 13 factors compared between the two stocks.

Meritage Corporation Company Profile

Meritage Homes Corporation operates as a holding company. The Company is a designer and builder of single-family homes. The Company operates through two segments: homebuilding and financial services. The homebuilding segment is engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes, and providing warranty and customer services. It builds homes in the regions of the United States and offers a range of homes that are designed for a range of homebuyers, including first-time, move-up, active adult and luxury. As of December 31, 2016, it had homebuilding operations in three regions: West, Central and East, which were consisted of nine states: Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina and Tennessee. It also operates Carefree Title Agency, Inc. (Carefree Title) company. Carefree Title’s core business includes title insurance and closing/settlement services it offers to its homebuyers.

NVR Company Profile

NVR, Inc. is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings. The Company’s segments are Homebuilding Mid Atlantic, Homebuilding North East, Homebuilding Mid East, Homebuilding South East and Mortgage Banking. Its Homebuilding Mid Atlantic segment operates in various geographic regions, which include Maryland, Virginia, West Virginia, Delaware and Washington, District of Columbia (D.C.). Its Homebuilding North East segment operates in various geographic regions, which include New Jersey and Eastern Pennsylvania. Its Homebuilding Mid East segment operates in various geographic regions, which include New York, Ohio, Indiana and Illinois, The Homebuilding South East segment operates in various geographic regions, which include North Carolina, South Carolina, Florida and Tennessee. The Mortgage Banking segment provides mortgage-related services to home building customers through its mortgage banking operations.

Receive News & Ratings for Meritage Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Meritage Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

How to Trade on Forex – 8 Steps for Beginners
How to Trade on Forex – 8 Steps for Beginners
Super Nintendo World Theme Park Officially Starts Construction
Super Nintendo World Theme Park Officially Starts Construction
Amazon and Apple Join Foxconn to Secure Chip Business of Toshiba
Amazon and Apple Join Foxconn to Secure Chip Business of Toshiba
Camera Zooms In and Can Recognize Faces
Camera Zooms In and Can Recognize Faces
Netflix Could See 150 Million Worldwide Subscribers
Netflix Could See 150 Million Worldwide Subscribers
LeEco Cutting Over 70% of Staff in U.S. Amidst Pull Back
LeEco Cutting Over 70% of Staff in U.S. Amidst Pull Back


Leave a Reply

© 2006-2017 Ticker Report. Google+.