Green Brick Partners (GRBK) versus Meritage Homes (MTH) Head to Head Survey

Green Brick Partners (NASDAQ: GRBK) and Meritage Homes (NYSE:MTH) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Valuation & Earnings

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This table compares Green Brick Partners and Meritage Homes’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Green Brick Partners $454.37 million 1.17 $14.97 million N/A N/A
Meritage Homes $3.23 billion 0.57 $143.25 million $3.88 11.86

Meritage Homes has higher revenue and earnings than Green Brick Partners.

Analyst Ratings

This is a summary of recent ratings for Green Brick Partners and Meritage Homes, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Green Brick Partners 0 0 1 0 3.00
Meritage Homes 0 4 5 0 2.56

Green Brick Partners currently has a consensus price target of $13.00, indicating a potential upside of 23.22%. Meritage Homes has a consensus price target of $51.78, indicating a potential upside of 12.56%. Given Green Brick Partners’ stronger consensus rating and higher possible upside, equities analysts clearly believe Green Brick Partners is more favorable than Meritage Homes.

Profitability

This table compares Green Brick Partners and Meritage Homes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Green Brick Partners 3.29% 11.17% 8.18%
Meritage Homes 4.44% 10.76% 5.15%

Insider and Institutional Ownership

81.5% of Green Brick Partners shares are held by institutional investors. Comparatively, 95.2% of Meritage Homes shares are held by institutional investors. 53.5% of Green Brick Partners shares are held by insiders. Comparatively, 5.6% of Meritage Homes shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Green Brick Partners has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Meritage Homes has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Summary

Green Brick Partners beats Meritage Homes on 7 of the 13 factors compared between the two stocks.

Green Brick Partners Company Profile

Green Brick Partners, Inc. operates in the real estate industry. The Company operates through two segments. The builder operations segment includes its controlled builders results, which include building and selling single-family detached homes and townhomes that are designed and built to meet local customer preferences, and the sale of lots. Builder operations consist of three operating segments: Texas, Georgia, and corporate and other. Corporate operations segment develops and implements strategic initiatives and supports its builder operations and land development by centralizing certain administrative functions, such as finance, treasury, information technology and human resources. The land development segment includes operations related to the acquisition and development of land, which is sold to its controlled builders and third-party homebuilders. As of December 31, 2016, it had owned or controlled over 5,200 home sites in various locations in the Dallas and Atlanta markets.

Meritage Homes Company Profile

Meritage Homes Corporation designs and builds single-family homes in the United States. The company operates through two segments, Homebuilding and Financial Services. It acquires and develops land; and constructs, markets, and sells homes for various homebuyers, including first-time, move-up, active-adult, and luxury homes under the Meritage Homes brand name. The company also provides warranty and customer services; and insurance and closing/settlement services for its homebuyers. It builds and sells homes in Texas, Arizona, California, Colorado, Florida, North Carolina, South Carolina, Georgia, and Tennessee. Meritage Homes Corporation was founded in 1985 and is based in Scottsdale, Arizona.

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