Meritage Homes vs Asbury Automotive

Meritage Homes and Asbury Automotive are compared on this page to illuminate business models, financial performance, and market context. The content provides a neutral, accessible overview to help readers understand the organisations side by side. Educational content, not financial advice.

Meritage Homes and Asbury Automotive are compared on this page to illuminate business models, financial performance, and market context. The content provides a neutral, accessible overview to help rea...

Comparison Snapshot

Key Financial Metrics

MTH

Metric

ABG

$5.26B

Market Cap

$4.76B

7.75%

Potential Profit

-1.59%

Buy

Analyst Rating

Hold

Investment Analysis

Meritage Homes

MTH

Pros

Meritage Homes delivered strong home closing revenue of $1.6 billion with a home closing gross margin of 21.4% in Q2 2025, demonstrating solid profitability.
The company showed improving efficiency with a backlog conversion rate of 208% and a return on equity of 12.5% over the past 12 months.
Meritage Homes maintained a strong liquidity position with $930 million in cash and a low net debt-to-capital ratio of 14.6% as of June 30, 2025.

Considerations

Analysts recently lowered 2025 EPS estimates for Meritage Homes, with the latest EPS falling short of expectations in Q3 2025.
The company reduced land acquisition and development spending guidance for 2025, indicating a more cautious approach to growth investments.
Despite revenue growth, home builder stocks like Meritage Homes face risks from potential housing market cyclicality and economic conditions impacting demand.

Asbury Automotive

ABG

Pros

Asbury Automotive Group operates a diversified portfolio of vehicle retail and aftermarket services, including new and used vehicle sales and repair services.
The company reported a sizable trailing twelve months revenue of $17.26 billion, reflecting a strong scale in the automotive retail sector.
Asbury Automotive benefits from a relatively low beta of 0.85, suggesting lower volatility compared to the broader market.

Considerations

Asbury Automotive pays no dividend, which may reduce appeal for income-focused investors.
Automotive retail is sensitive to macroeconomic factors such as consumer credit availability, used vehicle price fluctuations, and supply chain disruptions.
Analyst consensus ratings for Asbury Automotive currently lean toward 'Hold,' indicating some caution about near-term growth prospects.

About The Companies

Meritage Homes (MTH)

Meritage Homes Corporation (MTH) is a US-listed homebuilder specialising in single-family detached houses, often targeting entry-level and move-up buyers across fast-growing Sun Belt markets. The company generates revenue from land acquisition, home construction and the sale of completed homes, with additional margin from design options and upgrades. Meritage has emphasised energy-efficient building standards and prescriptive cost management to try to protect margins, but its performance remains cyclical and sensitive to mortgage rates, labour and materials costs, and local land supply. With a market cap around $5.08bn, investors should weigh potential upside from housing demand recovery against risks from interest-rate moves, inventory and consumer affordability. This is general educational information, not personalised advice; values can rise or fall and past performance does not predict future returns.

Asbury Automotive (ABG)

Asbury Automotive Group Inc. is a prominent American automotive retailer. The company's operations are divided into two main segments: Dealerships and Total Care Auto (TCA). Through its network of dealerships, Asbury offers a comprehensive range of automotive products and services, covering the full lifecycle of vehicle ownership. This includes the sale of new and used vehicles, as well as parts and services for vehicle repair, maintenance, and collision repairs. Furthermore, the company provides finance and insurance (F&I) products by arranging vehicle financing through third parties and offering aftermarket products like extended service contracts. With around 175 new-vehicle dealerships representing over 30 different brands, Asbury has a significant footprint in the US market. Investors may find it useful to consider how economic factors affecting consumer spending on large purchases, like cars, could influence the company's performance. As with any investment, a stock's value can go down as well as up.

Which Baskets Do They Appear In?

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The recent U.S. jobs report showed significantly slower growth than anticipated, signaling a potential cooling of the economy. This could prompt the Federal Reserve to lower interest rates, creating a favorable environment for interest-rate-sensitive industries and companies offering efficiency solutions.

Published: August 2, 2025

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U.S. Homebuilding Rebound

Recent data shows new home sales jumping 7.4% monthly, signaling a strong housing market revival. This collection features carefully selected homebuilders and suppliers positioned to benefit from increasing construction activity and rising home prices.

Published: June 30, 2025

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U.S. Housing Rebound

Tap into the growing strength of America's housing market. Our financial experts have carefully selected companies poised to benefit from the uptick in new home construction and sales, from leading homebuilders to essential material suppliers.

Published: June 30, 2025

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Which Baskets Do They Appear In?

Positioning For A Softer Labor Market

The recent U.S. jobs report showed significantly slower growth than anticipated, signaling a potential cooling of the economy. This could prompt the Federal Reserve to lower interest rates, creating a favorable environment for interest-rate-sensitive industries and companies offering efficiency solutions.

Published: August 2, 2025

Explore Basket

U.S. Homebuilding Rebound

Recent data shows new home sales jumping 7.4% monthly, signaling a strong housing market revival. This collection features carefully selected homebuilders and suppliers positioned to benefit from increasing construction activity and rising home prices.

Published: June 30, 2025

Explore Basket

U.S. Housing Rebound

Tap into the growing strength of America's housing market. Our financial experts have carefully selected companies poised to benefit from the uptick in new home construction and sales, from leading homebuilders to essential material suppliers.

Published: June 30, 2025

Explore Basket

Dream Home Economy

Want to own a piece of the American Dream? This collection features companies that build homes, supply materials, and provide essential services across the entire homeownership lifecycle. These carefully selected stocks represent the backbone of where Americans live.

Published: June 17, 2025

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Future of Housing Portfolio

Meet the innovators transforming how we build homes. These carefully selected companies are tackling the housing crisis with groundbreaking technologies—from 3D printing to modular construction—making housing more affordable, sustainable, and accessible for everyone.

Published: June 17, 2025

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Comparison Snapshot