Lowe's Companies Inc (LOW)vsMeritage Corporation (MTH)
LOW
Lowe's Companies Inc
$210.74
-0.12%
CONSUMER CYCLICAL · Cap: $115.86B
MTH
Meritage Corporation
$68.33
+0.21%
CONSUMER CYCLICAL · Cap: $4.97B
Smart Verdict
WallStSmart Research — data-driven comparison
Lowe's Companies Inc generates 1475% more annual revenue ($88.43B vs $5.62B). LOW leads profitability with a 7.5% profit margin vs 6.9%. MTH appears more attractively valued with a PEG of 0.54. MTH earns a higher WallStSmart Score of 57/100 (C).
LOW
Hold50
out of 100
Grade: D+
MTH
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-50.6%
Fair Value
$139.97
Current Price
$210.74
$70.77 premium
Margin of Safety
+5.6%
Fair Value
$82.71
Current Price
$68.33
$14.38 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Generating 2.8B in free cash flow
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
7.5% margin — thin
Weak financial health signals
ROE of 7.6% — below average capital efficiency
6.9% margin — thin
Weak financial health signals
Revenue declined 17.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : LOW
The strongest argument for LOW centers on Debt/Equity, Market Cap, P/E Ratio. Revenue growth of 10.3% demonstrates continued momentum. PEG of 1.36 suggests the stock is reasonably priced for its growth.
Bull Case : MTH
The strongest argument for MTH centers on Price/Book, Altman Z-Score, PEG Ratio. PEG of 0.54 suggests the stock is reasonably priced for its growth.
Bear Case : LOW
The primary concerns for LOW are Altman Z-Score, Return on Equity, Profit Margin.
Bear Case : MTH
The primary concerns for MTH are Return on Equity, Profit Margin, Piotroski F-Score.
Key Dynamics to Monitor
MTH carries more volatility with a beta of 1.41 — expect wider price swings.
LOW is growing revenue faster at 10.3% — sustainability is the question.
LOW generates stronger free cash flow (2.8B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MTH scores higher overall (57/100 vs 50/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Lowe's Companies Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.
Visit Website →Meritage Corporation
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
Meritage Homes Corporation designs and builds single-family homes in the United States. The company is headquartered in Scottsdale, Arizona.
Compare with Other HOME IMPROVEMENT RETAIL Stocks
Want to dig deeper into these stocks?