Comparing Toll Brothers (TOL) and Its Rivals

Toll Brothers (NYSE: TOL) is one of 23 publicly-traded companies in the “Homebuilding” industry, but how does it contrast to its competitors? We will compare Toll Brothers to related businesses based on the strength of its valuation, dividends, analyst recommendations, institutional ownership, profitability, earnings and risk.

Analyst Ratings

This is a summary of current ratings and recommmendations for Toll Brothers and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Toll Brothers 1 6 9 0 2.50
Toll Brothers Competitors 284 1683 1927 38 2.44

Toll Brothers presently has a consensus target price of $45.50, indicating a potential downside of 2.53%. As a group, “Homebuilding” companies have a potential downside of 0.92%. Given Toll Brothers’ competitors higher possible upside, analysts plainly believe Toll Brothers has less favorable growth aspects than its competitors.

Risk & Volatility

Toll Brothers has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, Toll Brothers’ competitors have a beta of 1.52, indicating that their average stock price is 52% more volatile than the S&P 500.

Dividends

Toll Brothers pays an annual dividend of $0.32 per share and has a dividend yield of 0.7%. Toll Brothers pays out 10.0% of its earnings in the form of a dividend. As a group, “Homebuilding” companies pay a dividend yield of 0.8% and pay out 13.7% of their earnings in the form of a dividend.

Institutional and Insider Ownership

82.5% of Toll Brothers shares are held by institutional investors. Comparatively, 78.9% of shares of all “Homebuilding” companies are held by institutional investors. 8.8% of Toll Brothers shares are held by company insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Toll Brothers and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Toll Brothers $5.82 billion $382.09 million 14.63
Toll Brothers Competitors $3.89 billion $231.12 million 496.19

Toll Brothers has higher revenue and earnings than its competitors. Toll Brothers is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Toll Brothers and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Toll Brothers 9.21% 12.07% 5.44%
Toll Brothers Competitors 9.77% 15.05% 8.11%

Summary

Toll Brothers competitors beat Toll Brothers on 8 of the 15 factors compared.

Toll Brothers Company Profile

Toll Brothers, Inc. is engaged in designing, building, marketing, selling and arranging financing for detached and attached homes in luxury residential communities. The Company operates through two segments: Traditional Home Building and Toll Brothers City Living (City Living). Within the Traditional Home Building segment, it operates in five geographic segments in the United States: the North, consisting of Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey and New York; the Mid-Atlantic, consisting of Delaware, Maryland, Pennsylvania and Virginia; the South, consisting of Florida, North Carolina and Texas; the West, consisting of Arizona, Colorado, Nevada and Washington, and California. City Living is the Company’s urban development division. Its products include Traditional Home Building Product and City Living Product. Its Traditional Home Building Product includes detached homes, move-up, executive, estate, and active-adult and age-qualified lines of home.

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