MTH vs. KBH
MTH (Meritage Homes Corporation) and KBH (KB Home) are both stocks. Both operate in the Residential Construction industry within the Consumer Cyclical sector. Over the past 10 years, MTH returned 14.52%/yr vs 15.23%/yr for KBH. A 0.54 correlation means they provide meaningful diversification when combined.
Performance
MTH vs. KBH - Performance Comparison
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Returns By Period
In the year-to-date period, MTH achieves a 2.76% return, which is significantly higher than KBH's -8.47% return. Both investments have delivered pretty close results over the past 10 years, with MTH having a 14.52% annualized return and KBH not far ahead at 15.23%.
MTH
- 1D
- -1.48%
- 1M
- 6.44%
- YTD
- 2.76%
- 6M
- -8.87%
- 1Y
- 7.17%
- 3Y*
- 4.82%
- 5Y*
- 6.39%
- 10Y*
- 14.52%
KBH
- 1D
- -0.56%
- 1M
- 6.92%
- YTD
- -8.47%
- 6M
- -21.56%
- 1Y
- 0.53%
- 3Y*
- 5.48%
- 5Y*
- 3.79%
- 10Y*
- 15.23%
MTH vs. KBH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MTH Meritage Homes Corporation | 2.76% | -12.32% | -10.16% | 90.53% | -24.46% | 47.38% | 35.53% | 66.42% | -28.28% | 47.13% |
KBH KB Home | -8.47% | -12.72% | 6.64% | 99.04% | -27.48% | 35.29% | -0.86% | 82.31% | -39.98% | 103.05% |
Correlation
The correlation between MTH and KBH is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.87 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.87 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.88 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.84 |
Correlation (All Time) Calculated using the full available price history since Dec 19, 1988 | 0.54 |
Over the past year, MTH and KBH have become more correlated (0.87) than their long-term average of 0.54, meaning their price movements have been converging.
Fundamentals
MTH:
$4.52B
KBH:
$3.26B
MTH:
$5.52
KBH:
$5.38
MTH:
12.16
KBH:
9.50
MTH:
0.84
KBH:
0.57
MTH:
0.89
KBH:
0.72
MTH:
$5.61B
KBH:
$5.92B
MTH:
$1.05B
KBH:
$893.19M
MTH:
$575.32M
KBH:
$477.26M
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Return for Risk
MTH vs. KBH — Risk / Return Rank
MTH
KBH
MTH vs. KBH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Meritage Homes Corporation (MTH) and KB Home (KBH). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| MTH | KBH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.17 | ||
| Sortino ratioReturn per unit of downside risk | +0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.03 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 0.26 | 0.02 | +0.24 |
| Martin ratioReturn relative to average drawdown | 0.50 | 0.04 | +0.46 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| MTH | KBH | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.19 | 0.01 | +0.17 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.17 | 0.10 | +0.07 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.34 | 0.34 | 0.00 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.18 | 0.16 | +0.02 |
Drawdowns
MTH vs. KBH - Drawdown Comparison
The maximum MTH drawdown since its inception was -93.22%, roughly equal to the maximum KBH drawdown of -92.78%. Use the drawdown chart below to compare losses from any high point for MTH and KBH.
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Drawdown Indicators
| MTH | KBH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -93.22% | -92.78% | -0.44% |
Max Drawdown (1Y)Largest decline over 1 year | -27.68% | -32.85% | +5.17% |
Max Drawdown (3Y)Largest decline over 3 years | -42.95% | -48.27% | +5.32% |
Max Drawdown (5Y)Largest decline over 5 years | -46.77% | -48.27% | +1.50% |
Max Drawdown (10Y)Largest decline over 10 years | -64.27% | -72.38% | +8.11% |
Current DrawdownCurrent decline from peak | -34.85% | -41.24% | +6.39% |
Average DrawdownAverage peak-to-trough decline | -47.59% | -43.55% | -4.04% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.29% | 13.83% | +0.46% |
Volatility
MTH vs. KBH - Volatility Comparison
Meritage Homes Corporation (MTH) has a higher volatility of 10.51% compared to KB Home (KBH) at 9.74%. This indicates that MTH's price experiences larger fluctuations and is considered to be riskier than KBH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MTH | KBH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.51% | 9.74% | +0.77% |
Volatility (6M)Calculated over the trailing 6-month period | 26.48% | 26.25% | +0.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 38.61% | 36.64% | +1.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 38.71% | 38.09% | +0.62% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 42.51% | 44.67% | -2.16% |
Dividends
MTH vs. KBH - Dividend Comparison
MTH's dividend yield for the trailing twelve months is around 2.64%, more than KBH's 1.95% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
KBH KB Home | 1.95% | 1.77% | 1.45% | 1.12% | 1.88% | 1.34% | 1.25% | 1.14% | 0.52% | 0.31% | 0.63% | 0.81% |
MTH Meritage Homes Corporation | 2.64% | 2.61% | 1.95% | 0.62% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Financials
MTH vs. KBH - Financials Comparison
This section allows you to compare key financial metrics between Meritage Homes Corporation and KB Home. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
MTH vs. KBH - Profitability Comparison
MTH - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Meritage Homes Corporation reported a gross profit of 193.80M and revenue of 1.12B. Therefore, the gross margin over that period was 17.4%.
KBH - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, KB Home reported a gross profit of 0.00 and revenue of 1.08B. Therefore, the gross margin over that period was 0.0%.
MTH - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Meritage Homes Corporation reported an operating income of 142.40M and revenue of 1.12B, resulting in an operating margin of 12.8%.
KBH - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, KB Home reported an operating income of 32.99M and revenue of 1.08B, resulting in an operating margin of 3.1%.
MTH - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Meritage Homes Corporation reported a net income of 55.31M and revenue of 1.12B, resulting in a net margin of 5.0%.
KBH - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, KB Home reported a net income of 33.42M and revenue of 1.08B, resulting in a net margin of 3.1%.
Frequently Asked Questions
MTH and KBH have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MTH has higher volatility (10.51%) compared to KBH (9.74%). In terms of maximum drawdown, MTH dropped -93.22% vs KBH's -92.78%.
MTH currently has the higher Sharpe Ratio (0.19 vs 0.01), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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