MTH vs NVR

For growth investors, NVR, Inc.

(NVR) is the stronger pick with -2. 1% 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 NVR, Inc. at 14. 0x. 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: NVR, Inc. wins at 1. 24x versus Meritage Homes Corporation's 4. 19x — a reasonable growth-adjusted valuation.

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

2%, compared to +18. 6% for NVR, Inc. (NVR). Over 10 years, the gap is even starker: MTH returned +319. 4% versus NVR's +272. 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), NVR, Inc.

(NVR) is the lower-risk stock at 0. 68β versus Meritage Homes Corporation's 1. 17β — meaning MTH is approximately 73% more volatile than NVR relative to the S&P 500. On balance sheet safety, NVR, Inc. (NVR) carries a lower debt/equity ratio of 31% versus 36% for Meritage Homes Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), NVR, Inc.

(NVR) is pulling ahead at -2. 1% versus -8. 4% for Meritage Homes Corporation (MTH). On earnings-per-share growth, the picture is similar: NVR, Inc. grew EPS -13. 8% year-over-year, compared to -40. 3% for Meritage Homes Corporation. Over a 3-year CAGR, NVR leads at -0. 7% 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.

NVR, Inc.

(NVR) is the more profitable company, earning 13. 0% net margin versus 7. 7% for Meritage Homes Corporation — meaning it keeps 13. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NVR leads at 16. 2% versus 9. 2% for MTH. At the gross margin level — before operating expenses — NVR leads at 23. 0%, 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, NVR, Inc. (NVR) is the more undervalued stock at a PEG of 1. 24x versus Meritage Homes Corporation's 4. 19x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Meritage Homes Corporation (MTH) trades at 12. 9x forward P/E versus 16. 9x for NVR, Inc. — 4. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MTH: 28. 4% to $83. 25.

In this comparison, MTH (2.

6% yield) pays a dividend. NVR 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%, NVR: +272. 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.

MTH pays a dividend while NVR 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.