Head-To-Head Contrast: Toll Brothers (TOL) and The Competition

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

Earnings and Valuation

This table compares Toll Brothers and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Toll Brothers $5.82 billion $382.09 million 15.01
Toll Brothers Competitors $3.89 billion $231.12 million 481.07

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.

Volatility and Risk

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

Analyst Recommendations

This is a summary 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 6 9 0 2.50
Toll Brothers Competitors 284 1674 1903 38 2.43

Toll Brothers currently has a consensus price target of $46.62, suggesting a potential downside of 2.62%. As a group, “Homebuilding” companies have a potential downside of 4.97%. Given Toll Brothers’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Toll Brothers is more favorable than its peers.

Insider & Institutional Ownership

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

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 9.21% 12.00% 5.50%
Toll Brothers Competitors 9.66% 14.80% 8.01%

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.

Summary

Toll Brothers beats its peers on 8 of the 15 factors compared.

About Toll Brothers

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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