Toll Brothers (TOL) and Its Competitors Head to Head Contrast

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

Profitability

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

Net Margins Return on Equity Return on Assets
Toll Brothers 8.12% 10.44% 4.67%
Toll Brothers Competitors 9.97% 14.88% 8.14%

Volatility & Risk

Toll Brothers has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, Toll Brothers’ peers have a beta of 1.51, indicating that their average stock price is 51% 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 11.9% of its earnings in the form of a dividend. As a group, “Homebuilding” companies pay a dividend yield of 0.8% and pay out 13.4% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Toll Brothers and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Toll Brothers 1 7 8 0 2.44
Toll Brothers Competitors 261 1591 1869 36 2.45

Toll Brothers presently has a consensus target price of $41.92, suggesting a potential downside of 8.70%. As a group, “Homebuilding” companies have a potential upside of 0.78%. Given Toll Brothers’ peers stronger consensus rating and higher possible upside, analysts clearly believe Toll Brothers has less favorable growth aspects than its peers.

Valuation and Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Toll Brothers $5.17 billion $382.09 million 17.07
Toll Brothers Competitors $3.85 billion $231.04 million 513.88

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

Institutional and Insider Ownership

81.0% of Toll Brothers shares are owned by institutional investors. Comparatively, 81.1% of shares of all “Homebuilding” companies are owned by institutional investors. 8.8% of Toll Brothers shares are owned by insiders. Comparatively, 14.3% of shares of all “Homebuilding” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Toll Brothers peers beat Toll Brothers on 10 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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