Contrasting Meritage Homes (NYSE:MTH) & Everus (NYSE:ECG)

Everus (NYSE:ECG) and Meritage Homes (NYSE:MTH) are both mid-cap construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Earnings & Valuation

This table compares Everus and Meritage Homes”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everus	$2.73 billion	1.27	$137.23 million	N/A	N/A
Meritage Homes	$6.43 billion	0.85	$738.75 million	$22.09	6.87

Meritage Homes has higher revenue and earnings than Everus.

Analyst Recommendations

This is a summary of recent ratings and target prices for Everus and Meritage Homes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everus	0	2	2	0	2.50
Meritage Homes	0	5	4	0	2.44

Everus presently has a consensus price target of $67.67, indicating a potential downside of 0.31%. Meritage Homes has a consensus price target of $215.14, indicating a potential upside of 41.85%. Given Meritage Homes’ higher possible upside, analysts clearly believe Meritage Homes is more favorable than Everus.

Insider & Institutional Ownership

98.4% of Meritage Homes shares are held by institutional investors. 2.0% of Meritage Homes shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Everus and Meritage Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Everus	N/A	N/A	N/A
Meritage Homes	12.63%	16.89%	12.09%

Summary

Meritage Homes beats Everus on 9 of the 11 factors compared between the two stocks.

About Everus

Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.

About Meritage Homes

Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family attached and detached homes in the United States. The company operates through two segments, Homebuilding and Financial Services. It acquires and develops land; and constructs, markets, and sells homes for entry-level and first move-up buyers in Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The company also offers title and escrow, mortgage, insurance, and closing/settlement services to its homebuyers. Meritage Homes Corporation was founded in 1985 and is based in Scottsdale, Arizona.