Meritage Corporation (MTH)vsToll Brothers Inc (TOL)
MTH
Meritage Corporation
$68.33
+0.21%
CONSUMER CYCLICAL · Cap: $4.97B
TOL
Toll Brothers Inc
$137.42
+1.10%
CONSUMER CYCLICAL · Cap: $13.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Toll Brothers Inc generates 97% more annual revenue ($11.05B vs $5.62B). TOL leads profitability with a 11.7% profit margin vs 6.9%. MTH appears more attractively valued with a PEG of 0.54. TOL earns a higher WallStSmart Score of 61/100 (C+).
MTH
Buy57
out of 100
Grade: C
TOL
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+5.6%
Fair Value
$82.71
Current Price
$68.33
$14.38 discount
Margin of Safety
-53.9%
Fair Value
$95.60
Current Price
$137.42
$41.82 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
ROE of 7.6% — below average capital efficiency
6.9% margin — thin
Weak financial health signals
Revenue declined 17.7%
Weak financial health signals
Revenue declined 7.6%
Earnings declined 22.3%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : TOL
The strongest argument for TOL centers on P/E Ratio, Altman Z-Score, Price/Book. PEG of 1.09 suggests the stock is reasonably priced for its growth.
Bear Case : MTH
The primary concerns for MTH are Return on Equity, Profit Margin, Piotroski F-Score.
Bear Case : TOL
The primary concerns for TOL are Piotroski F-Score, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
MTH profiles as a value stock while TOL is a declining play — different risk/reward profiles.
MTH carries more volatility with a beta of 1.41 — expect wider price swings.
TOL is growing revenue faster at -7.6% — sustainability is the question.
TOL generates stronger free cash flow (110M), providing more financial flexibility.
Bottom Line
TOL scores higher overall (61/100 vs 57/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
Toll Brothers Inc
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
Toll Brothers, Inc. designs, builds, markets, sells and manages the financing of a variety of detached and attached homes in luxury residential communities in the United States. The company is headquartered in Horsham, Pennsylvania.
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