Analyzing CYRELA BRAZIL R/S (CYRBY) & Meritage Homes (NYSE:MTH)

Meritage Homes (NYSE:MTH) and CYRELA BRAZIL R/S (OTCMKTS:CYRBY) are both small-cap construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Earnings & Valuation

This table compares Meritage Homes and CYRELA BRAZIL R/S’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Meritage Homes $3.51 billion 0.53 $227.33 million $5.58 8.72
CYRELA BRAZIL R/S $820.77 million 1.95 -$29.75 million N/A N/A

Meritage Homes has higher revenue and earnings than CYRELA BRAZIL R/S.

Profitability

This table compares Meritage Homes and CYRELA BRAZIL R/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meritage Homes 6.47% 13.49% 6.72%
CYRELA BRAZIL R/S -5.22% -3.06% -1.74%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Meritage Homes and CYRELA BRAZIL R/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meritage Homes 1 7 4 0 2.25
CYRELA BRAZIL R/S 0 0 0 0 N/A

Meritage Homes currently has a consensus target price of $44.01, indicating a potential downside of 9.60%. Given Meritage Homes’ higher probable upside, equities research analysts clearly believe Meritage Homes is more favorable than CYRELA BRAZIL R/S.

Volatility and Risk

Meritage Homes has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, CYRELA BRAZIL R/S has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Insider and Institutional Ownership

97.1% of Meritage Homes shares are held by institutional investors. 6.1% 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 company is poised for long-term growth.

Dividends

CYRELA BRAZIL R/S pays an annual dividend of $0.15 per share and has a dividend yield of 3.7%. Meritage Homes does not pay a dividend.

Summary

Meritage Homes beats CYRELA BRAZIL R/S on 10 of the 12 factors compared between the two stocks.

About Meritage Homes

Meritage Homes Corporation designs and builds single-family 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 first-time and first move-up buyers. The company also offers luxury homes; and title insurance and closing/settlement services to its homebuyers. It builds and sells homes in Texas, Arizona, California, Colorado, Florida, North Carolina, South Carolina, Georgia, and Tennessee under the Meritage Homes brand name. Meritage Homes Corporation was founded in 1985 and is based in Scottsdale, Arizona.

About CYRELA BRAZIL R/S

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops, constructs, and sells residential real estate properties in Brazil. It offers apartments and condos. The company was founded in 1962 and is headquartered in São Paulo, Brazil. As of February 28, 2002, Cyrela Brazil Realty S.A. Empreendimentos e Participações operates as a subsidiary of Creed Holdings Ltd.

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