Dream Finders Homes, Inc. (DFH) vs Meritage Homes Corporation (MTH)

Dream Finders Homes, Inc. and Meritage Homes Corporation are both Residential Construction companies. Meritage Homes Corporation is the larger, with a market value of $4.6B against $1.1B — 4.1× the size. Dream Finders Homes, Inc. trades at the lower P/E: 12.8× against 15.9×. Dream Finders Homes, Inc. grew revenue faster over the last twelve months: −10.9% against −14.9%. Meritage Homes Corporation has the higher net margin (5.79% vs 2.15%) and the higher return on invested capital (3.51% vs 2.59%). Across the 21 metrics below, Dream Finders Homes, Inc. leads on 11 and Meritage Homes Corporation on 10.

Valuation

Metric DFH MTH Residential Construction median
P/E 12.79 15.93 15.45
P/S 0.27 0.89 1.32
P/B 0.79 0.91 1.24
Price to free cash flow n/m 9.48 21.26
EV/EBITDA 16.89 15.47 12.52
EV/Sales 0.64 1.12 1.48
Earnings yield 7.82% 6.28% 6.38%
Free cash flow yield (16.26%) 10.55% 4.64%

Profitability

Metric DFH MTH Residential Construction median
Gross margin 15.17% 17.72% 19.15%
Operating margin 2.96% 6.78% 7.50%
Net margin 2.15% 5.79% 6.72%
Free cash flow margin (4.44%) 9.41% 8.39%
Return on equity 6.36% 5.76% 11.56%
Return on assets 2.22% 3.88% 6.99%
Return on invested capital 2.59% 3.51% 4.98%

Growth

Metric DFH MTH Residential Construction median
Revenue growth (TTM) (10.92%) (14.89%) (6.00%)
EPS growth (last fiscal year) (35.93%) (40.77%) (25.22%)
Revenue growth, 5-year CAGR 30.69% 5.41% 8.74%
Net income growth, 5-year CAGR 20.83% 1.36% 8.25%

Health

Metric DFH MTH Residential Construction median
Debt to equity 1.28 0.37 0.17
Current ratio 1.41 1.72 3.25
Net debt to EBITDA 1.03 1.86 0.37

Dividend

Metric DFH MTH Residential Construction median
Dividend yield — 2.64% 1.15%
Payout ratio — 0.42 0.18

Size

Metric DFH MTH Residential Construction median
Market cap 1.13b 4.58b 4.72b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack