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

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

Institutional & Insider Ownership

98.4% of Meritage Homes shares are held by institutional investors. 2.0% of Meritage Homes shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meritage Homes	$6.43 billion	0.87	$738.75 million	$22.09	6.96
Everus	$2.73 billion	1.23	$137.23 million	N/A	N/A

Meritage Homes has higher revenue and earnings than Everus.

Profitability

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

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

Analyst Ratings

This is a breakdown of current ratings for Meritage Homes and Everus, as provided by MarketBeat.com.

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

Meritage Homes currently has a consensus price target of $107.57, suggesting a potential downside of 30.07%. Everus has a consensus price target of $67.67, suggesting a potential upside of 2.92%. Given Everus’ stronger consensus rating and higher probable upside, analysts clearly believe Everus is more favorable than Meritage Homes.

Summary

Meritage Homes beats Everus on 8 of the 11 factors compared between the two stocks.

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.

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.