MTH vs LEN

For growth investors, Lennar Corporation (LEN) is the stronger pick with -3.

6% revenue growth year-over-year, versus -8. 4% for Meritage Homes Corporation (MTH). Meritage Homes Corporation (MTH) offers the better valuation at 10. 1x trailing P/E (12. 9x 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, Meritage Homes Corporation (MTH) is the cheapest at 10.

1x versus Lennar Corporation at 11. 3x. On forward P/E, Meritage Homes Corporation is actually cheaper at 12. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Meritage Homes Corporation wins at 4. 19x versus Lennar Corporation's 44. 65x.

Over the past 5 years, Meritage Homes Corporation (MTH) delivered a total return of +23.

2%, compared to -6. 5% for Lennar Corporation (LEN). Over 10 years, the gap is even starker: MTH returned +319. 4% versus LEN's +129. 2%. 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), Lennar Corporation (LEN) is the lower-risk stock at 0.

92β versus Meritage Homes Corporation's 1. 17β — meaning MTH is approximately 27% more volatile than LEN relative to the S&P 500. On balance sheet safety, Lennar Corporation (LEN) carries a lower debt/equity ratio of 29% versus 36% for Meritage Homes Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Lennar Corporation (LEN) is pulling ahead at -3.

6% versus -8. 4% for Meritage Homes Corporation (MTH). On earnings-per-share growth, the picture is similar: Meritage Homes Corporation grew EPS -40. 3% year-over-year, compared to -44. 2% for Lennar Corporation. Over a 3-year CAGR, LEN leads at 0. 5% 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.

Meritage Homes Corporation (MTH) is the more profitable company, earning 7.

7% net margin versus 6. 0% for Lennar Corporation — meaning it keeps 7. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MTH leads at 9. 2% versus 8. 0% for LEN. At the gross margin level — before operating expenses — MTH leads at 19. 7%, 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, Meritage Homes Corporation (MTH) is the more undervalued stock at a PEG of 4. 19x versus Lennar Corporation's 44. 65x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Meritage Homes Corporation (MTH) trades at 12. 9x forward P/E versus 14. 7x for Lennar Corporation — 1. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MTH: 28. 4% to $83. 25.

All stocks in this comparison pay dividends.

Meritage Homes Corporation (MTH) offers the highest yield at 2. 6%, versus 2. 2% for Lennar Corporation (LEN).

For long-horizon retirement investors, Lennar Corporation (LEN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

92), 2. 2% yield, +129. 2% 10Y return). Both have compounded well over 10 years (LEN: +129. 2%, MTH: +319. 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.

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.