Financial Survey: Breville Group (OTCMKTS:BVILF) vs. Meritage Homes (NYSE:MTH)

Breville Group (OTCMKTS:BVILF – Get Free Report) and Meritage Homes (NYSE:MTH – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Profitability

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

Earnings & Valuation

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

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

Insider and Institutional Ownership

24.9% of Breville Group shares are owned by institutional investors. Comparatively, 98.4% of Meritage Homes shares are owned by institutional investors. 2.5% of Meritage Homes shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Breville Group pays an annual dividend of C$0.26 per share and has a dividend yield of 1.1%. Meritage Homes pays an annual dividend of $1.92 per share and has a dividend yield of 2.7%. Breville Group pays out 69.4% of its earnings in the form of a dividend. Meritage Homes pays out 40.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Meritage Homes has increased its dividend for 2 consecutive years. Meritage Homes is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Breville Group and Meritage Homes, as reported by MarketBeat.

Meritage Homes has a consensus price target of $79.25, indicating a potential upside of 11.89%. Given Meritage Homes’ stronger consensus rating and higher probable upside, analysts clearly believe Meritage Homes is more favorable than Breville Group.

Summary

Meritage Homes beats Breville Group on 13 of the 14 factors compared between the two stocks.

About Breville Group

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Breville Group Limited designs, develops, markets, and distributes small electrical kitchen appliances in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was formerly known as Housewares International Limited and changed its name to Breville Group Limited in November 2008. Breville Group Limited was founded in 1957 and is headquartered in Alexandria, Australia.

About Meritage Homes

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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.