MTH vs SHW

For growth investors, The Sherwin-Williams Company (SHW) 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. 8x 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 The Sherwin-Williams Company at 31. 2x. On forward P/E, Meritage Homes Corporation is actually cheaper at 12. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Sherwin-Williams Company wins at 3. 94x versus Meritage Homes Corporation's 4. 17x.

Over the past 5 years, Meritage Homes Corporation (MTH) delivered a total return of +17.

4%, compared to +16. 1% for The Sherwin-Williams Company (SHW). Over 10 years, the gap is even starker: MTH returned +306. 9% versus SHW's +250. 0%. 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), The Sherwin-Williams Company (SHW) is the lower-risk stock at 0.

79β versus Meritage Homes Corporation's 1. 17β — meaning MTH is approximately 48% more volatile than SHW relative to the S&P 500. On balance sheet safety, Meritage Homes Corporation (MTH) carries a lower debt/equity ratio of 36% versus 3% for The Sherwin-Williams Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Sherwin-Williams Company (SHW) is pulling ahead at 2.

1% versus -8. 4% for Meritage Homes Corporation (MTH). On earnings-per-share growth, the picture is similar: The Sherwin-Williams Company grew EPS -2. 7% year-over-year, compared to -40. 3% for Meritage Homes Corporation. Over a 3-year CAGR, SHW leads at 2. 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.

The Sherwin-Williams Company (SHW) is the more profitable company, earning 10.

9% net margin versus 7. 7% for Meritage Homes Corporation — meaning it keeps 10. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SHW leads at 16. 1% versus 9. 2% for MTH. At the gross margin level — before operating expenses — SHW leads at 48. 9%, 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, The Sherwin-Williams Company (SHW) is the more undervalued stock at a PEG of 3. 94x versus Meritage Homes Corporation's 4. 17x. 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. 8x forward P/E versus 27. 3x for The Sherwin-Williams Company — 14. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MTH: 29. 2% to $83. 25.

All stocks in this comparison pay dividends.

Meritage Homes Corporation (MTH) offers the highest yield at 2. 7%, versus 1. 0% for The Sherwin-Williams Company (SHW).

For long-horizon retirement investors, The Sherwin-Williams Company (SHW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

79), 1. 0% yield, +250. 0% 10Y return). Both have compounded well over 10 years (SHW: +250. 0%, MTH: +306. 9%), 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.

These companies operate in different sectors (MTH (Consumer Cyclical) and SHW (Basic Materials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: MTH is a small-cap deep-value stock; SHW is a mid-cap quality compounder stock. 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.