MHO also reported an increase in gross margins although not as large as what TMHC reported. From MHO's report:
Our gross margins improved by 160 basis points over last year to 24.5%, and our overhead expense ratio improved by 90 basis points to 10.7%
That being said, it should also be noted that a year ago TMHC reported lower margins, saying their lower margins were caused by the acquisition and assimilation costs of WLH.
Last Q, MHO had higher gross margins than TMHC did (24.5% vs 21.2%).
That being said, I like both of them. In fact, I think pretty much all of the home builders are undervalued now. Some have PEs as low as 5 with strong outlooks as long as the supply chain challenges don't get too out of hand.