Cavco Industries, Inc. (CVCO) vs Meritage Homes Corporation (MTH)

Cavco Industries, Inc. and Meritage Homes Corporation are both Residential Construction companies. Cavco Industries, Inc. and Meritage Homes Corporation are of similar size ($4.2B and $4.2B). Meritage Homes Corporation trades at the lower P/E: 13.5× against 24.0×. Cavco Industries, Inc. grew revenue faster over the last twelve months: 9.69% against −13.3%. Cavco Industries, Inc. has the higher net margin (7.89% vs 6.11%) and the higher return on invested capital (16.7% vs 3.99%). Across the 22 metrics below, Cavco Industries, Inc. leads on 14 and Meritage Homes Corporation on 8.

Valuation

Metric CVCO MTH Residential Construction median
P/E 23.99 13.51 13.51
P/S 1.87 0.79 1.02
P/B 3.87 0.85 1.17
Price to free cash flow 18.29 10.30 16.79
EV/EBITDA 16.51 12.86 10.48
EV/Sales 1.76 0.99 1.31
Earnings yield 4.17% 7.40% 7.37%
Free cash flow yield 5.47% 9.71% 5.73%

Profitability

Metric CVCO MTH Residential Construction median
Gross margin 23.15% 18.12% 22.30%
Operating margin 9.62% 7.22% 9.03%
Net margin 7.89% 6.11% 7.30%
Free cash flow margin 10.22% 7.70% 8.46%
Return on equity 16.66% 6.38% 9.84%
Return on assets 12.24% 4.30% 7.43%
Return on invested capital 16.71% 3.99% 6.90%

Growth

Metric CVCO MTH Residential Construction median
Revenue growth (TTM) 9.69% (13.27%) (7.37%)
EPS growth (last fiscal year) 15.79% (40.77%) —
Revenue growth, 5-year CAGR 15.16% 5.41% 8.74%
Net income growth, 5-year CAGR 19.98% 1.36% 8.43%

Health

Metric CVCO MTH Residential Construction median
Debt to equity 0.00 0.37 0.20
Current ratio 2.23 1.97 3.56
Net debt to EBITDA (1.09) 1.86 0.28

Dividend

Metric CVCO MTH Residential Construction median
Dividend yield — 0.74% 0.89%
Payout ratio 0.00 0.02 0.00

Size

Metric CVCO MTH Residential Construction median
Market cap 4.18b 4.20b 4.18b

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