M/I Homes, Inc. (MHO) vs Meritage Homes Corporation (MTH)

M/I Homes, Inc. and Meritage Homes Corporation are both Residential Construction companies. Meritage Homes Corporation is the larger, with a market value of $4.2B against $3.5B — 1.2× the size. M/I Homes, Inc. trades at the lower P/E: 11.4× against 13.5×. M/I Homes, Inc. grew revenue faster over the last twelve months: −4.99% against −13.3%. M/I Homes, Inc. has the higher net margin (7.44% vs 6.11%) and the higher return on invested capital (7.22% vs 3.99%). Across the 22 metrics below, M/I Homes, Inc. leads on 17 and Meritage Homes Corporation on 5.

Valuation

Metric MHO MTH Residential Construction median
P/E 11.43 13.51 13.51
P/S 0.84 0.79 1.02
P/B 1.10 0.85 1.17
Price to free cash flow 17.36 10.30 16.79
EV/EBITDA 9.03 12.86 10.48
EV/Sales 0.89 0.99 1.31
Earnings yield 8.75% 7.40% 7.37%
Free cash flow yield 5.76% 9.71% 5.73%

Profitability

Metric MHO MTH Residential Construction median
Gross margin 22.60% 18.12% 22.30%
Operating margin 9.32% 7.22% 9.03%
Net margin 7.44% 6.11% 7.30%
Free cash flow margin 4.81% 7.70% 8.46%
Return on equity 10.06% 6.38% 9.84%
Return on assets 6.61% 4.30% 7.43%
Return on invested capital 7.22% 3.99% 6.90%

Growth

Metric MHO MTH Residential Construction median
Revenue growth (TTM) (4.99%) (13.27%) (7.37%)
EPS growth (last fiscal year) (25.22%) (40.77%) —
Revenue growth, 5-year CAGR 7.72% 5.41% 8.74%
Net income growth, 5-year CAGR 10.93% 1.36% 8.43%

Health

Metric MHO MTH Residential Construction median
Debt to equity 0.29 0.37 0.20
Current ratio 7.65 1.97 3.56
Net debt to EBITDA 0.54 1.86 0.28

Dividend

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

Size

Metric MHO MTH Residential Construction median
Market cap 3.48b 4.20b 4.18b

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