Sifting through countless of stocks in the Household Durables industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Meritage Homes Corporation or Taylor Morrison Home Corporation because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Meritage Homes Corporation and Taylor Morrison Home Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Meritage Homes Corporation and Taylor Morrison Home Corporation

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, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee. The company also provides title and escrow, mortgage, insurance, title insurance, and closing/settlement services to its homebuyers. Meritage Homes Corporation was founded in 1985 and is based in Scottsdale, Arizona.

Taylor Morrison Home Corporation, together with its subsidiaries, operates as a homebuilder and land developer in the United States. It designs, builds, and sells single, and multifamily detached and attached homes in markets for entry-level, move-up, and resort lifestyle buyers under the Taylor Morrison and Esplanade brand names; and develops lifestyle and master-planned communities with single, and multi-family detached and attached homes. The company is also involved in the Build-to-Rent homebuilding business under the Yardly brand name; and provision of financial services, title insurance, and closing settlement services. Taylor Morrison Home Corporation was founded in 1936 and is headquartered in Scottsdale, Arizona.

Latest Household Durables and Meritage Homes Corporation, Taylor Morrison Home Corporation Stock News

As of June 10, 2026, Meritage Homes Corporation had a $4.7 billion market capitalization, compared to the Household Durables median of $1.4 million. Meritage Homes Corporation’s stock is NA in 2026, NA in the previous five trading days and up 8.09% in the past year.

Currently, Meritage Homes Corporation’s price-earnings ratio is 12.8. Meritage Homes Corporation’s trailing 12-month revenue is $5.6 billion with a 6.9% net profit margin. Year-over-year quarterly sales growth most recently was -17.7%. Analysts expect adjusted earnings to reach $5.047 per share for the current fiscal year. Meritage Homes Corporation currently has a 2.7% dividend yield.

Currently, Taylor Morrison Home Corporation’s price-earnings ratio is 10.7. Taylor Morrison Home Corporation’s trailing 12-month revenue is $7.6 billion with a 8.8% net profit margin. Year-over-year quarterly sales growth most recently was -26.8%. Analysts expect adjusted earnings to reach $5.291 per share for the current fiscal year. Taylor Morrison Home Corporation does not currently pay a dividend.

How We Compare Meritage Homes Corporation and Taylor Morrison Home Corporation Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Meritage Homes Corporation and Taylor Morrison Home Corporation’s stock grades to see how they measure up against one another.

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Meritage Homes Corporation and Taylor Morrison Home Corporation Stock Value Grades

Company	Ticker	Value
Meritage Homes Corporation	MTH	B
Taylor Morrison Home Corporation	TMHC	A

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Meritage Homes Corporation has a Value Score of 78, which is Value. Taylor Morrison Home Corporation has a Value Score of 92, which is Deep Value.

The Value Stock Winner: Taylor Morrison Home Corporation

As you can clearly see from the Value Grade breakdown above, Taylor Morrison Home Corporation is considered to have better value than Meritage Homes Corporation. For investors who focus solely on a company’s valuation, Taylor Morrison Home Corporation could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Meritage Homes Corporation and Taylor Morrison Home Corporation’s Momentum Grades

Company	Ticker	Momentum
Meritage Homes Corporation	MTH	C
Taylor Morrison Home Corporation	TMHC	B

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Meritage Homes Corporation has a Momentum Score of 50, which is Average. Taylor Morrison Home Corporation has a Momentum Score of 66, which is Strong.

The Momentum Grade Winner: Taylor Morrison Home Corporation

As you can clearly see from the Momentum Grade breakdown above, Taylor Morrison Home Corporation is considered to have stronger momentum compared to Meritage Homes Corporation. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Taylor Morrison Home Corporation could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Meritage Homes Corporation and Taylor Morrison Home Corporation’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Meritage Homes Corporation	MTH	F
Taylor Morrison Home Corporation	TMHC	C

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Meritage Homes Corporation has a Earnings Estimate Score of 16, which is Very Negative. Taylor Morrison Home Corporation has a Earnings Estimate Score of 59, which is Neutral.

The Earnings Estimate Revisions Stock Winner: No Clear Winner

Neither Meritage Homes Corporation or Taylor Morrison Home Corporation has an Earnings Estimate Revisions Grade that could be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Meritage Homes Corporation or Taylor Morrison Home Corporation is the better investment when it comes to estimate revisions.

Other Meritage Homes Corporation and Taylor Morrison Home Corporation Grades

In addition to Value, Momentum and Estimate Revisions, A+ Investor also provides grades for Growth and Quality.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Meritage Homes Corporation and Taylor Morrison Home Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Meritage Homes Corporation or Taylor Morrison Home Corporation Stock?

Overall, Meritage Homes Corporation stock has a Value Score of 78, Momentum Score of 50 and Estimate Revisions Score of 16.

Taylor Morrison Home Corporation stock has a Value Score of 92, Momentum Score of 66 and Estimate Revisions Score of 59.

Comparing Meritage Homes Corporation and Taylor Morrison Home Corporation’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.