GRBK vs MTH vs TMHC vs LGIH vs SKY

For growth investors, Champion Homes, Inc.

(SKY) is the stronger pick with 22. 7% revenue growth year-over-year, versus -22. 6% for LGI Homes, Inc. (LGIH). Taylor Morrison Home Corporation (TMHC) offers the better valuation at 7. 7x 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, Taylor Morrison Home Corporation (TMHC) is the cheapest at 7.

7x versus Champion Homes, Inc. at 21. 4x. On forward P/E, Green Brick Partners, Inc. is actually cheaper at 11. 0x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Taylor Morrison Home Corporation wins at 0. 34x versus Meritage Homes Corporation's 4. 17x — 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 +154. 1%, compared to -74. 8% for LGI Homes, Inc. (LGIH). Over 10 years, the gap is even starker: GRBK returned +742. 1% versus LGIH's +56. 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), Taylor Morrison Home Corporation (TMHC) is the lower-risk stock at 0.

92β versus LGI Homes, Inc. 's 1. 70β — meaning LGIH is approximately 84% more volatile than TMHC relative to the S&P 500. On balance sheet safety, Champion Homes, Inc. (SKY) carries a lower debt/equity ratio of 8% versus 79% for LGI Homes, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Champion Homes, Inc.

(SKY) is pulling ahead at 22. 7% versus -22. 6% for LGI Homes, Inc. (LGIH). On earnings-per-share growth, the picture is similar: Champion Homes, Inc. grew EPS 35. 2% year-over-year, compared to -62. 4% for LGI Homes, Inc.. 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 4. 3% for LGI Homes, Inc. — 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 4. 7% for LGIH. 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, Taylor Morrison Home Corporation (TMHC) is the more undervalued stock at a PEG of 0. 34x versus Meritage Homes Corporation's 4. 17x. 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. 0x forward P/E versus 19. 4x for Champion Homes, Inc. — 8. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LGIH: 91. 8% to $88. 80.

In this comparison, MTH (2.

7% yield) pays a dividend. GRBK, TMHC, LGIH, SKY do 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. 7% yield, +306. 9% 10Y return). LGI Homes, Inc. (LGIH) carries a higher beta of 1. 70 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (MTH: +306. 9%, LGIH: +56. 4%), 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.

In terms of investment character: GRBK is a small-cap deep-value stock; MTH is a small-cap deep-value stock; TMHC is a small-cap deep-value stock; LGIH is a small-cap deep-value stock; SKY is a small-cap high-growth stock. MTH pays a dividend while GRBK, TMHC, LGIH, SKY do 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.