Meritage Homes Corporation (MTH) vs NVR, Inc. (NVR)

Meritage Homes Corporation and NVR, Inc. are both Residential Construction companies. NVR, Inc. is the larger, with a market value of $16.6B against $4.2B — 4.0× the size. Meritage Homes Corporation trades at the lower P/E: 13.5× against 15.5×. NVR, Inc. grew revenue faster over the last twelve months: −9.93% against −13.3%. NVR, Inc. has the higher net margin (12.0% vs 6.11%) and the higher return on invested capital (34.9% vs 3.99%). Across the 22 metrics below, NVR, Inc. leads on 15 and Meritage Homes Corporation on 7.

Valuation

Metric MTH NVR Residential Construction median
P/E 13.51 15.48 13.51
P/S 0.79 1.78 1.02
P/B 0.85 5.01 1.17
Price to free cash flow 10.30 16.23 16.79
EV/EBITDA 12.86 10.48 10.48
EV/Sales 0.99 1.71 1.31
Earnings yield 7.40% 6.46% 7.37%
Free cash flow yield 9.71% 6.16% 5.73%

Profitability

Metric MTH NVR Residential Construction median
Gross margin 18.12% 21.99% 22.30%
Operating margin 7.22% 16.04% 9.03%
Net margin 6.11% 11.98% 7.30%
Free cash flow margin 7.70% 10.99% 8.46%
Return on equity 6.38% 31.54% 9.84%
Return on assets 4.30% 20.01% 7.43%
Return on invested capital 3.99% 34.92% 6.90%

Growth

Metric MTH NVR Residential Construction median
Revenue growth (TTM) (13.27%) (9.93%) (7.37%)
EPS growth (last fiscal year) (40.77%) (13.84%) —
Revenue growth, 5-year CAGR 5.41% 6.50% 8.74%
Net income growth, 5-year CAGR 1.36% 8.25% 8.43%

Health

Metric MTH NVR Residential Construction median
Debt to equity 0.37 0.27 0.20
Current ratio 1.97 5.28 3.56
Net debt to EBITDA 1.86 (0.88) 0.28

Dividend

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

Size

Metric MTH NVR Residential Construction median
Market cap 4.20b 16.62b 4.18b

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