MTH vs. LEN

Last updated Jun 4, 2026

MTH (Meritage Homes Corporation) and LEN (Lennar Corporation) 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 8.58%/yr for LEN. A 0.53 correlation means they provide meaningful diversification when combined.

Performance

MTH vs. LEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Meritage Homes Corporation (MTH) and Lennar Corporation (LEN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MTH achieves a 2.76% return, which is significantly higher than LEN's -12.12% return. Over the past 10 years, MTH has outperformed LEN with an annualized return of 14.52%, while LEN has yielded a comparatively lower 8.58% annualized return.

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%

LEN

• 1D: -1.58%
• 1M: 6.05%
• YTD: -12.12%
• 6M: -32.14%
• 1Y: -14.57%
• 3Y*: -4.76%
• 5Y*: 0.65%
• 10Y*: 8.58%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MTH vs. LEN - 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%
LEN Lennar Corporation	-12.12%	-20.80%	-7.32%	66.92%	-20.64%	53.99%	37.97%	42.96%	-37.91%	50.28%

Correlation

The correlation between MTH and LEN is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Dec 19, 1988	0.53

Over the past year, MTH and LEN have become more correlated (0.83) than their long-term average of 0.53, meaning their price movements have been converging.

Fundamentals

EPS MTH : $5.52 LEN : $8.18
PE Ratio MTH : 12.16 LEN : 10.93
PS Ratio MTH : 0.84 LEN : 0.67
Total Revenue (TTM) MTH : $5.61B LEN : $34.13B
Gross Profit (TTM) MTH : $1.05B LEN : $6.01B
EBITDA (TTM) MTH : $575.32M LEN : $2.95B

Return for Risk

MTH vs. LEN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MTH

MTH Risk / Return Rank: 45
MTH Sharpe Ratio Rank: 47
MTH Sortino Ratio Rank: 44
MTH Omega Ratio Rank: 42
MTH Calmar Ratio Rank: 47
MTH Martin Ratio Rank: 46

LEN

LEN Risk / Return Rank: 25
LEN Sharpe Ratio Rank: 23
LEN Sortino Ratio Rank: 22
LEN Omega Ratio Rank: 23
LEN Calmar Ratio Rank: 29
LEN Martin Ratio Rank: 28

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MTH vs. LEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Meritage Homes Corporation (MTH) and Lennar Corporation (LEN). 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	LEN	Difference
Sharpe ratio: Return per unit of total volatility	0.19	-0.39	+0.58
Sortino ratio: Return per unit of downside risk	0.60	-0.35	+0.96
Omega ratio: Gain probability vs. loss probability	1.07	0.96	+0.11
Calmar ratio: Return relative to maximum drawdown	0.26	-0.35	+0.61
Martin ratio: Return relative to average drawdown	0.50	-0.68	+1.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MTH vs. LEN - Sharpe Ratio Comparison

The current MTH Sharpe Ratio is 0.19, which is higher than the LEN Sharpe Ratio of -0.39. The chart below compares the historical Sharpe Ratios of MTH and LEN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	MTH	LEN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.19	-0.39	+0.58
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.17	0.02	+0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.34	0.23	+0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.18	0.32	-0.14

Drawdowns

MTH vs. LEN - Drawdown Comparison

The maximum MTH drawdown since its inception was -93.22%, roughly equal to the maximum LEN drawdown of -94.28%. Use the drawdown chart below to compare losses from any high point for MTH and LEN.

Drawdown Indicators

	MTH	LEN	Difference
Max Drawdown Largest peak-to-trough decline	-93.22%	-94.28%	+1.06%
Max Drawdown (1Y) Largest decline over 1 year	-27.68%	-41.39%	+13.71%
Max Drawdown (3Y) Largest decline over 3 years	-42.95%	-54.51%	+11.56%
Max Drawdown (5Y) Largest decline over 5 years	-46.77%	-54.51%	+7.74%
Max Drawdown (10Y) Largest decline over 10 years	-64.27%	-58.80%	-5.47%
Current Drawdown Current decline from peak	-34.85%	-50.55%	+15.70%
Average Drawdown Average peak-to-trough decline	-47.59%	-26.28%	-21.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.29%	21.38%	-7.09%

Volatility

MTH vs. LEN - Volatility Comparison

Meritage Homes Corporation (MTH) and Lennar Corporation (LEN) have volatilities of 10.51% and 10.10%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MTH	LEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.51%	10.10%	+0.41%
Volatility (6M) Calculated over the trailing 6-month period	26.48%	26.46%	+0.02%
Volatility (1Y) Calculated over the trailing 1-year period	38.61%	37.21%	+1.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	38.71%	34.45%	+4.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	42.51%	37.23%	+5.28%

Dividends

MTH vs. LEN - Dividend Comparison

MTH's dividend yield for the trailing twelve months is around 2.64%, more than LEN's 2.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LEN Lennar Corporation	2.24%	1.95%	1.47%	1.01%	1.66%	0.86%	0.82%	0.29%	0.41%	0.25%	0.37%	0.33%
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. LEN - Profitability Comparison

The chart below illustrates the profitability comparison between Meritage Homes Corporation and Lennar Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

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%.

LEN - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Lennar Corporation reported a gross profit of 1.53B and revenue of 9.37B. Therefore, the gross margin over that period was 16.3%.

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%.

LEN - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Lennar Corporation reported an operating income of 666.96M and revenue of 9.37B, resulting in an operating margin of 7.1%.

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%.

LEN - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Lennar Corporation reported a net income of 490.24M and revenue of 9.37B, resulting in a net margin of 5.2%.

Frequently Asked Questions

Can I hold both MTH and LEN in my portfolio?

MTH and LEN have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MTH or LEN?

MTH has higher volatility (10.51%) compared to LEN (10.10%). In terms of maximum drawdown, MTH dropped -93.22% vs LEN's -94.28%.

Which has better risk-adjusted returns?

MTH currently has the higher Sharpe Ratio (0.19 vs -0.39), 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.