Contrasting Meritage Homes (NYSE:MTH) & Koss (NASDAQ:KOSS)

Koss (NASDAQ:KOSSGet Free Report) and Meritage Homes (NYSE:MTHGet Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Koss -3.00% -1.29% -1.06%
Meritage Homes 6.11% 7.13% 4.83%

Analyst Recommendations

This is a breakdown of recent ratings for Koss and Meritage Homes, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Koss 1 0 0 0 1.00
Meritage Homes 0 8 4 0 2.33

Meritage Homes has a consensus target price of $78.25, indicating a potential upside of 23.74%. Given Meritage Homes’ stronger consensus rating and higher possible upside, analysts plainly believe Meritage Homes is more favorable than Koss.

Risk and Volatility

Koss has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, Meritage Homes has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Earnings & Valuation

This table compares Koss and Meritage Homes”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Koss $13.02 million 2.61 -$390,000.00 ($0.04) -89.75
Meritage Homes $5.86 billion 0.70 $453.01 million $4.78 13.23

Meritage Homes has higher revenue and earnings than Koss. Koss is trading at a lower price-to-earnings ratio than Meritage Homes, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

6.2% of Koss shares are held by institutional investors. Comparatively, 98.4% of Meritage Homes shares are held by institutional investors. 44.1% of Koss shares are held by company insiders. Comparatively, 2.5% of Meritage Homes shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Meritage Homes beats Koss on 11 of the 14 factors compared between the two stocks.

About Koss

(Get Free Report)

Koss Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of stereo headphones and related accessories in the United States, the Czech Republic, Sweden, Canada, Korea, Republic of Belgium, Malaysia, and internationally. It offers high-fidelity headphones, wireless bluetooth headphones, wireless bluetooth speakers, computer headsets, telecommunications headsets, and active noise canceling headphones. The company sells its products through distributors, international distributors, audio specialty stores, the internet, national retailers, grocery stores, electronics retailers, and prisons under the Koss name, as well as private label. It sells its products to distributors for resale to school systems, as well as directly to other manufacturers. The company markets through domestic retail outlets and numerous retailers. It exports its products. Koss Corporation was founded in 1953 and is headquartered in Milwaukee, Wisconsin.

About Meritage Homes

(Get Free Report)

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.

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