Toll Brothers (NYSE:TOL) and Dorel Industries (OTCMKTS:DIIBF) Head to Head Comparison

Dorel Industries (OTCMKTS:DIIBF) and Toll Brothers (NYSE:TOL) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Valuation & Earnings

This table compares Dorel Industries and Toll Brothers”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dorel Industries	$1.19 billion	0.03	-$142.22 million	($4.16)	-0.27
Toll Brothers	$10.76 billion	1.22	$1.35 billion	$12.46	11.39

Toll Brothers has higher revenue and earnings than Dorel Industries. Dorel Industries is trading at a lower price-to-earnings ratio than Toll Brothers, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Dorel Industries and Toll Brothers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dorel Industries	0	1	0	0	2.00
Toll Brothers	1	4	14	0	2.68

Toll Brothers has a consensus target price of $167.27, suggesting a potential upside of 17.88%. Given Toll Brothers’ stronger consensus rating and higher possible upside, analysts clearly believe Toll Brothers is more favorable than Dorel Industries.

Insider and Institutional Ownership

91.8% of Toll Brothers shares are owned by institutional investors. 19.3% of Dorel Industries shares are owned by insiders. Comparatively, 1.4% of Toll Brothers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Dorel Industries has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Toll Brothers has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.

Profitability

This table compares Dorel Industries and Toll Brothers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dorel Industries	-12.73%	N/A	-11.89%
Toll Brothers	11.14%	14.21%	8.24%

Summary

Toll Brothers beats Dorel Industries on 12 of the 14 factors compared between the two stocks.

About Dorel Industries

Dorel Industries Inc. engages in the design, manufacture, sourcing, marketing, and distribution of home and juvenile products worldwide. The company operates through Dorel Home and Dorel Juvenile segments. The Dorel Home segment offers ready-to assemble furniture and home furnishings products, including metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. This segment markets its products under the DHP, Signature Sleep, Little Seeds, Ameriwood Home, Cosco Home & Office, Queer Eye, Cosmo Living, Novogratz, Real Rooms, Mr. Kate, Baby Relax, Alphason, Bertini, Ntense, and Notio brands. The Dorel Juvenile segment provides children's accessories comprising infant car seats, strollers, home equipment, toys, infant health, and safety aids under the Maxi-Cosi, Tiny Love, Infanti, Safety 1st, Bébé Confort, Quinny, and Cosco brands. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.

About Toll Brothers

Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers; and develops, operates, and rents apartments. In addition, it provides various interior fit-out options, such as flooring, wall tile, plumbing, cabinets, fixtures, appliances, lighting, and home-automation and security technologies. Further, the company owns and operates architectural, engineering, mortgage, title, land development, insurance, smart home technology, landscaping, lumber distribution, house component assembly, and component manufacturing operations. It serves luxury first-time, move-up, empty-nester, active-adult, and second-home buyers. Toll Brothers, Inc. was founded in 1967 and is headquartered in Fort Washington, Pennsylvania.