Head-To-Head Comparison: Meritage Homes (NYSE:MTH) versus Yunhong Green CTI (NASDAQ:YHGJ)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Meritage Homes and Yunhong Green CTI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meritage Homes	2	7	4	0	2.15
Yunhong Green CTI	1	0	0	0	1.00

Meritage Homes currently has a consensus target price of $73.56, indicating a potential upside of 26.77%. Given Meritage Homes’ stronger consensus rating and higher possible upside, equities analysts clearly believe Meritage Homes is more favorable than Yunhong Green CTI.

Insider & Institutional Ownership

98.4% of Meritage Homes shares are held by institutional investors. Comparatively, 2.0% of Yunhong Green CTI shares are held by institutional investors. 2.5% of Meritage Homes shares are held by insiders. Comparatively, 44.8% of Yunhong Green CTI shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Meritage Homes has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Yunhong Green CTI has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Valuation and Earnings

This table compares Meritage Homes and Yunhong Green CTI”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meritage Homes	$5.86 billion	0.65	$453.01 million	$4.78	12.14
Yunhong Green CTI	$19.70 million	0.35	-$2.53 million	($1.11)	-2.37

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

Profitability

This table compares Meritage Homes and Yunhong Green CTI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Meritage Homes	6.11%	7.13%	4.83%
Yunhong Green CTI	-14.43%	-38.81%	-13.25%

Summary

Meritage Homes beats Yunhong Green CTI on 13 of the 14 factors compared between the two stocks.

About Meritage Homes

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.

About Yunhong Green CTI

Yunhong Green CTI Ltd. develops, produces, distributes, and sells consumer products in the United States and internationally. It offers novelty products, including foil balloons; latex balloons under the Partyloons name; and toy balloon products, which include punch balls, water bombs, and balloons twisted into shapes, as well as other inflatable toy items. The company also offers packaging films and custom film products for food, and other commercial and packaging applications; and container products, as well as assembles and sells Candy Blossom product line. It primarily serves various retail outlets, including general merchandise stores, discount and drugstore chains, grocery chains, card and gift shops, party goods stores, and florists and balloon decorators. The company sells its products directly, as well as through a network of distributors and wholesalers, retail chains, and independent sales representatives. The company was formerly known as Yunhong CTI Ltd. and changed its name to Yunhong Green CTI Ltd. in August 2023. Yunhong Green CTI Ltd. was founded in 1983 and is headquartered in Lake Barrington, Illinois.