TRI Pointe Group (TPH) vs. Meritage Corporation (MTH) Head to Head Analysis
TRI Pointe Group (NYSE: TPH) and Meritage Corporation (NYSE:MTH) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitabiliy and institutional ownership.
Valuation & Earnings
This table compares TRI Pointe Group and Meritage Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TRI Pointe Group||$2.32 billion||0.89||$210.85 million||$0.84||16.29|
|Meritage Corporation||$3.12 billion||0.57||$241.92 million||$3.64||12.06|
Meritage Corporation has higher revenue and earnings than TRI Pointe Group. Meritage Corporation is trading at a lower price-to-earnings ratio than TRI Pointe Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for TRI Pointe Group and Meritage Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TRI Pointe Group||1||4||3||0||2.25|
TRI Pointe Group currently has a consensus target price of $14.00, suggesting a potential upside of 2.34%. Meritage Corporation has a consensus target price of $40.29, suggesting a potential downside of 8.23%. Given TRI Pointe Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe TRI Pointe Group is more favorable than Meritage Corporation.
Volatility & Risk
TRI Pointe Group has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, Meritage Corporation has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.
This table compares TRI Pointe Group and Meritage Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TRI Pointe Group||5.77%||7.32%||3.71%|
Institutional & Insider Ownership
98.7% of TRI Pointe Group shares are held by institutional investors. Comparatively, 97.1% of Meritage Corporation shares are held by institutional investors. 9.4% of TRI Pointe Group shares are held by company insiders. Comparatively, 5.6% of Meritage Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
TRI Pointe Group beats Meritage Corporation on 9 of the 14 factors compared between the two stocks.
TRI Pointe Group Company Profile
TRI Pointe Group, Inc. is a homebuilder company. The Company’s operations are organized in two principal businesses, including homebuilding and financial services. Its homebuilding operation consists of six segments: Maracay Homes, including operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California and Colorado, and Winchester Homes, consisting of operations in Maryland and Virginia. Its financial services operation (TRI Pointe Solutions) includes mortgage financing operations and title services operations. Its mortgage financing operation (TRI Pointe Connect) provides mortgage financing to its homebuyers in all of its operated markets. Its title services operation (TRI Pointe Assurance) provides title examinations for its homebuyers in its Trendmaker Homes and Winchester Homes brands.
Meritage Corporation Company Profile
Meritage Homes Corporation operates as a holding company. The Company is a designer and builder of single-family homes. The Company operates through two segments: homebuilding and financial services. The homebuilding segment is engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes, and providing warranty and customer services. It builds homes in the regions of the United States and offers a range of homes that are designed for a range of homebuyers, including first-time, move-up, active adult and luxury. As of December 31, 2016, it had homebuilding operations in three regions: West, Central and East, which were consisted of nine states: Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina and Tennessee. It also operates Carefree Title Agency, Inc. (Carefree Title) company. Carefree Title’s core business includes title insurance and closing/settlement services it offers to its homebuyers.
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