Smith Douglas Homes (NYSE:SDHC – Get Free Report) and Meritage Homes (NYSE:MTH – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.
Profitability
This table compares Smith Douglas Homes and Meritage Homes’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Smith Douglas Homes | N/A | N/A | N/A |
Meritage Homes | 12.54% | 17.63% | 12.65% |
Institutional and Insider Ownership
98.4% of Meritage Homes shares are owned by institutional investors. 2.0% of Meritage Homes shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Smith Douglas Homes | $764.63 million | 0.34 | $123.18 million | N/A | N/A |
Meritage Homes | $6.14 billion | 0.99 | $738.75 million | $21.44 | 7.77 |
Meritage Homes has higher revenue and earnings than Smith Douglas Homes.
Analyst Ratings
This is a summary of recent ratings for Smith Douglas Homes and Meritage Homes, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Smith Douglas Homes | 0 | 5 | 1 | 0 | 2.17 |
Meritage Homes | 1 | 3 | 3 | 0 | 2.29 |
Smith Douglas Homes presently has a consensus price target of $27.70, suggesting a potential downside of 5.46%. Meritage Homes has a consensus price target of $172.67, suggesting a potential upside of 3.67%. Given Meritage Homes’ stronger consensus rating and higher possible upside, analysts plainly believe Meritage Homes is more favorable than Smith Douglas Homes.
Summary
Meritage Homes beats Smith Douglas Homes on 11 of the 11 factors compared between the two stocks.
About Smith Douglas Homes
Smith Douglas Homes Corp., together with its subsidiaries, engages in the design, construction, and sale of single-family homes in the southeastern United States. It also provides closing, escrow, and title insurance services. The company sells its products to entry-level and empty-nest homebuyers. Smith Douglas Homes Corp. was founded in 2008 and is headquartered in Woodstock, Georgia.
About Meritage Homes
Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family attached and detached 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 entry-level and first move-up buyers in Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The company also offers title and escrow, mortgage, insurance, and closing/settlement services to its homebuyers. Meritage Homes Corporation was founded in 1985 and is based in Scottsdale, Arizona.
Receive News & Ratings for Smith Douglas Homes Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Smith Douglas Homes and related companies with MarketBeat.com's FREE daily email newsletter.