COMPARE · Reviewed July 29, 2026
MTH vs SKY
Verdict: Side-by-side breakdown using the Bull Rankings model. MTH scored 51.2, SKY scored 53.5 — SKY leads.
Compare another set
MTH
Meritage Homes Corporation
51.2
$70.83 · $4.7B
fundamentals as of
Score gap
2.3
SKY leads
SKY
Champion Homes, Inc.
53.5
$80.36 · $4.4B
fundamentals as of
The model, pillar by pillar (0–100 each)
MTH
stronger →← stronger
SKY
55
Qualityreturns · margins · balance sheet
75
50
Growthrevenue & earnings expansion
50
49
Valuevaluation vs sector peers
41
MTH and SKY split the three pillars evenly.
Fundamentals, head-to-head
MTH
SKY
$238mC
FCF
$270mC
-8.3%D
Rev
+7.3%B
0.37A-
D/E
0.09A
12.9xA-
P/E
22.0xB
0.54A-
PEG
3.02D
Winner per row is the stronger grade in our model; a tie or a missing value shows no highlight.
Valuation · DCF cross-check
MTH
SKY
9% above
Price vs fair valuelower is cheaper
20% below
~17%/yr
Growth the price implies10-yr FCF · lower = less priced in
~6%/yr
-30%
1-yr DCF upside
+3%
-9%
5-yr DCF upside
+25%
+33%
10-yr DCF upside
+66%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
MTH
Why this score
- Buying back stock
- Raising its dividend
- Revenue shrinking
SKY
Why this score
- Buying back stock
- Cyclical growth
The companies
MTHMeritage Homes Corporation
Why now
Residential Construction · market cap $4.7b. 17% off the 52-week high of $85.38. Revenue -8% — in contraction; any catalyst that reverses this triggers re-rating. PEG 0.54 — paying under fair value for the growth rate. 8 sell-side analysts rate this a Buy with a mean 1-yr target of $81.63 (implying +15% upside).
Moat
Moat signals from the quantitative card are modest — profitability and capital efficiency are middle-of-pack. The thesis here depends on softer factors (switching costs, brand, distribution, regulatory protection) not captured by the quality-growth screen.
Risk
Revenue contracting -8% — the operational turn is not yet visible in the top line. ROE 8% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
SKYChampion Homes, Inc.
Why now
Residential Construction · market cap $4.4b. 19% off the 52-week high of $99.17. 6 sell-side analysts rate this a Buy with a mean 1-yr target of $92.50 (implying +15% upside).
Moat
ROE 13% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 130% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.