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HD vs MTH

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
MTH
Meritage Homes Corporation
NEUTRAL
Price
$67.02
Market Cap
$4.48B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
HD
23.1
MTH
12.23
Forward P/E
HD
20.17
MTH
9.94
P/B Ratio
HD
25.57
MTH
0.88
P/S Ratio
HD
1.99
MTH
0.8
EV/EBITDA
HD
15.68
MTH
11.19

Profitability

Gross Margin
HD
33.32%
MTH
19.08%
Operating Margin
HD
10.08%
MTH
5.84%
Profit Margin
HD
8.6%
MTH
6.86%
ROE
HD
145.54%
MTH
7.49%
ROA
HD
12.98%
MTH
3.9%

Growth

Revenue Growth
HD
-3.8%
MTH
-17.7%
Earnings Growth
HD
-14.2%
MTH
-51.5%

Financial Health

Debt/Equity
HD
5.14
MTH
0.37
Current Ratio
HD
1.06
MTH
14.97
Quick Ratio
HD
0.21
MTH
2.15

Dividends

Dividend Yield
HD
2.83%
MTH
2.86%
Payout Ratio
HD
64.65%
MTH
32.3%

AI Verdict

HD BEARISH

HD shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Concerns include weak profitability or high valuation.

Strengths
Strong ROE of 145.5%
Risks
Premium vs Graham Number ($64.2)
Declining revenue (-3.8%)
High debt burden with D/E of 5.14
MTH NEUTRAL

MTH presents a stark contrast between strong defensive valuation and deteriorating operational health. The Piotroski F-Score of 3/9 indicates weak financial health, corroborated by a severe collapse in earnings (-51.50% YoY) and revenue (-17.70% YoY). While the stock trades below book value (P/B 0.88) and below its Graham Number ($96.94), the growth-based intrinsic value of $38.36 suggests the market is pricing in a significant downturn. The combination of bearish insider activity and four consecutive earnings misses offsets the attractive valuation metrics.

Strengths
Trading below book value (P/B 0.88)
Low leverage with a Debt/Equity ratio of 0.37
Extremely high liquidity (Current Ratio 14.97)
Risks
Severe earnings contraction (-51.50% YoY)
Negative revenue growth trends both YoY and Q/Q
Weak operational efficiency as indicated by Piotroski F-Score (3/9)

Compare Another Pair

HD vs MTH: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and Meritage Homes Corporation (MTH) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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