Verdict: Side-by-side breakdown using the Bull Rankings model. MTH scored 30.7, SKY scored 50.9 — SKY leads.
Compare another set
MTH
Meritage Homes Corporation
Residential Construction · Quality-Growth
30.7
$58.81 · $3.8B
fundamentals as of
Score gap
20.2
SKY leads
SKY
Champion Homes, Inc.
Residential Construction · Quality-Growth
50.9
$79.63 · $4.3B
fundamentals as of
At a glance · who leads each dimension, on the model's own rules
CheapestMTH12.6x
Fastest growthSKY+4.5%
Strongest balance sheetSKY0.08
Highest qualitySKY74 / 100
Largest discount to fair valueMTH-4%
Side by side · every name on one set of axes
Growth against the P/E multiple. Up and to the right is cheaper and faster — the quality-growth idea in one picture. Points beyond the axis are pinned to the edge and marked off-scale rather than allowed to compress everything else.
The model, pillar by pillar (0–100 each)
MTH
stronger →← stronger
SKY
62
Qualityreturns · margins · balance sheet
74
19
Growthrevenue & earnings expansion
50
25
Valuevaluation vs sector peers
36
SKY is stronger on 3 of 3 pillars.
Fundamentals, head-to-head
MTH
SKY
$415mC
FCF
$266mC
-8.3%D
Rev
+4.5%C+
0.38A-
D/E
0.08A
12.6xA-
P/E
23.2xC+
—
PEG
4.43D
Winner per row is the stronger grade; where grades tie, the better figure breaks it. A true tie or a missing value shows no highlight.
Valuation · DCF cross-check
MTH
SKY
4% below
Price vs fair valuelower is cheaper
7% above
~-2%/yr
Growth the price impliesyr-1 FCF growth, fading to 4% · lower = less priced in
~6%/yr
+16%
1-yr DCF upside
-9%
+4%
5-yr DCF upside
-7%
-10%
10-yr DCF upside
-4%
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
SKY
Why this score
Buying back stock
Cyclical growth
The companies
MTHMeritage Homes Corporation
Residential Construction · $58.81 · beta 1.34
Why now
Residential Construction · market cap $3.8b. Down 31% from 52-week high of $85.38 — deep drawdown territory. Revenue -8% — in contraction; any catalyst that reverses this triggers re-rating. 9 sell-side analysts rate this a Buy with a mean 1-yr target of $77.56 (implying +32% upside).
Moat
FCF converts 126% of net income — earnings translate cleanly into cash.
Risk
Revenue contracting -8% — the operational turn is not yet visible in the top line. Down 31% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. ROE 7% 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.
Residential Construction · $79.63 · beta 1.02
Why now
Residential Construction · market cap $4.3b. 20% off the 52-week high of $99.17. 6 sell-side analysts rate this a Buy with a mean 1-yr target of $103.50 (implying +30% upside).
Moat
ROE 12% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 139% of net income — earnings translate cleanly into cash.
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
MTH leads SKY by 0.3 points (55.9 to 55.6), its sharpest advantage coming in P/E (grade A-). A contrarian could still prefer SKY for its stronger Rev (grade C+). Note they play different roles — MTH screens as value, SKY screens as growth — so the model rewards different traits for each.
Our AI analyst is busy right now, so this verdict is drawn directly from the pillars, grades and DCF above.
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.
Where MTH and SKY diverge
On the headline score the gap is 20.2 points in favor of SKY. The widest single difference is Growth, where SKY leads by 31.2 points.
GrowthMTH 18.8 · SKY 50.0SKY +31.2
QualityMTH 61.9 · SKY 73.7SKY +11.8
ValueMTH 24.8 · SKY 35.8SKY +11.0
Pillars run 0–100. Value is judged against each company's own sector, so a Value score is a statement about a company relative to its own industry rather than to the other name here. A wide Value gap usually means the market already prices the difference in quality or growth — which is the trade-off this comparison comes down to.
Common questions
Is SKY or MTH the better stock?
SKY scores higher: SKY 50.9, MTH 30.7 out of 100 on the Bull Rankings quality-growth score, which blends business quality, growth and valuation into one number. A higher score means a stronger business at a more reasonable price — it is not a price target or a recommendation.
Where do SKY and MTH differ most?
The widest gap is growth, where SKY leads by 31 points on the 0–100 pillar scale. SKY leads all three pillars, so the gap is broad rather than a single-measure difference.
How are SKY and MTH scored?
Each carries the same 0–100 quality-growth score used everywhere on the site, built from three pillars — quality (profitability and returns on capital), growth (revenue and earnings), and value (what you pay for them) — combined as a geometric mean, so a weak pillar cannot be papered over by a strong one.
How current is this comparison?
The whole universe is re-scored every trading day after the US market close, so the scores and fundamentals here reflect the latest published edition.