GRBK vs MTH

For growth investors, Green Brick Partners, Inc.

(GRBK) is the stronger pick with -0. 0% revenue growth year-over-year, versus -8. 4% for Meritage Homes Corporation (MTH). Green Brick Partners, Inc. (GRBK) offers the better valuation at 9. 5x trailing P/E (11. 2x forward), making it the more compelling value choice. Analysts rate Meritage Homes Corporation (MTH) a "Buy" — based on 38 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Green Brick Partners, Inc.

(GRBK) is the cheapest at 9. 5x versus Meritage Homes Corporation at 10. 1x. On forward P/E, Green Brick Partners, Inc. is actually cheaper at 11. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Green Brick Partners, Inc. wins at 0. 43x versus Meritage Homes Corporation's 4. 19x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Green Brick Partners, Inc.

(GRBK) delivered a total return of +165. 8%, compared to +23. 2% for Meritage Homes Corporation (MTH). Over 10 years, the gap is even starker: GRBK returned +800. 5% versus MTH's +319. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Green Brick Partners, Inc.

(GRBK) is the lower-risk stock at 1. 06β versus Meritage Homes Corporation's 1. 17β — meaning MTH is approximately 11% more volatile than GRBK relative to the S&P 500. On balance sheet safety, Green Brick Partners, Inc. (GRBK) carries a lower debt/equity ratio of 17% versus 36% for Meritage Homes Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Green Brick Partners, Inc.

(GRBK) is pulling ahead at -0. 0% versus -8. 4% for Meritage Homes Corporation (MTH). On earnings-per-share growth, the picture is similar: Green Brick Partners, Inc. grew EPS -16. 3% year-over-year, compared to -40. 3% for Meritage Homes Corporation. Over a 3-year CAGR, GRBK leads at 6. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Green Brick Partners, Inc.

(GRBK) is the more profitable company, earning 14. 9% net margin versus 7. 7% for Meritage Homes Corporation — meaning it keeps 14. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GRBK leads at 19. 5% versus 9. 2% for MTH. At the gross margin level — before operating expenses — GRBK leads at 30. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Green Brick Partners, Inc. (GRBK) is the more undervalued stock at a PEG of 0. 43x versus Meritage Homes Corporation's 4. 19x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Green Brick Partners, Inc. (GRBK) trades at 11. 2x forward P/E versus 12. 9x for Meritage Homes Corporation — 1. 7x cheaper on a one-year earnings basis.

In this comparison, MTH (2.

6% yield) pays a dividend. GRBK does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Meritage Homes Corporation (MTH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

17), 2. 6% yield, +319. 4% 10Y return). Both have compounded well over 10 years (MTH: +319. 4%, GRBK: +800. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

MTH pays a dividend while GRBK does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.