Beazer Homes USA, Inc. (BZH) vs Meritage Homes Corporation (MTH)

Beazer Homes USA, Inc. and Meritage Homes Corporation are both Residential Construction companies. Meritage Homes Corporation is the larger, with a market value of $3.9B against $891.4M — 4.4× the size. Beazer Homes USA, Inc. has negative trailing earnings, so its P/E is not meaningful; Meritage Homes Corporation trades at 12.3×. Beazer Homes USA, Inc. grew revenue faster over the last twelve months: −12.8% against −13.3%. Meritage Homes Corporation has the higher net margin (6.11% vs −0.37%) and the higher return on invested capital (3.99% vs −0.96%). Across the 19 metrics below, Meritage Homes Corporation leads on 16 and Beazer Homes USA, Inc. on 3.

Valuation

Metric BZH MTH Residential Construction median
P/E n/m 12.30 13.21
P/S 0.43 0.72 0.96
P/B 0.77 0.77 1.07
Price to free cash flow n/m 9.38 15.63
EV/EBITDA n/m 11.94 10.53
EV/Sales 1.04 0.91 1.27
Earnings yield (0.87%) 8.13% 7.24%
Free cash flow yield (17.26%) 10.66% 6.23%

Profitability

Metric BZH MTH Residential Construction median
Gross margin 12.44% 18.12% 22.30%
Operating margin (1.80%) 7.22% 9.03%
Net margin (0.37%) 6.11% 7.30%
Free cash flow margin (7.35%) 7.70% 8.46%
Return on equity (0.65%) 6.38% 9.84%
Return on assets (0.28%) 4.30% 7.43%
Return on invested capital (0.96%) 3.99% 6.90%

Growth

Metric BZH MTH Residential Construction median
Revenue growth (TTM) (12.75%) (13.27%) (7.66%)
EPS growth (last fiscal year) (66.45%) (40.77%) (25.22%)
Revenue growth, 5-year CAGR 2.20% 5.41% 8.74%
Net income growth, 5-year CAGR (2.68%) 1.36% 8.43%

Health

Metric BZH MTH Residential Construction median
Debt to equity 1.23 0.37 0.20
Current ratio 14.64 1.97 3.56
Net debt to EBITDA 14.53 1.86 0.28

Dividend

Metric BZH MTH Residential Construction median
Dividend yield — 3.16% 1.29%
Payout ratio — 0.39 0.17

Size

Metric BZH MTH Residential Construction median
Market cap 891.37m 3.93b 3.93b

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