Toll Brothers (NYSE: TOL) is one of 24 public companies in the “Homebuilding” industry, but how does it weigh in compared to its competitors? We will compare Toll Brothers to related companies based on the strength of its valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Volatility & Risk

Toll Brothers has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, Toll Brothers’ competitors have a beta of 1.52, meaning that their average share 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 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.

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 8.12% 10.44% 4.67%
Toll Brothers Competitors 9.74% 14.79% 7.94%

Institutional & Insider Ownership

81.3% of Toll Brothers shares are held by institutional investors. Comparatively, 78.4% of shares of all “Homebuilding” companies are held by institutional investors. 8.8% of Toll Brothers shares are held by insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Toll Brothers and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Toll Brothers 1 6 8 0 2.47
Toll Brothers Competitors 281 1665 1912 38 2.44

Toll Brothers presently has a consensus price target of $43.09, suggesting a potential downside of 7.79%. As a group, “Homebuilding” companies have a potential downside of 1.82%. Given Toll Brothers’ competitors higher possible upside, analysts plainly believe Toll Brothers has less favorable growth aspects than its competitors.

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Toll Brothers $5.17 billion $382.09 million 17.37
Toll Brothers Competitors $3.83 billion $228.40 million 507.46

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.

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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