Toll Brothers (NYSE: TOL) is one of 22 public companies in the “Homebuilding” industry, but how does it compare to its rivals? We will compare Toll Brothers to related companies based on the strength of its profitability, risk, dividends, earnings, valuation, analyst recommendations and institutional ownership.

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 13.3% of their earnings in the form of a dividend.

Earnings and Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Toll Brothers $5.17 billion $382.09 million 17.44
Toll Brothers Competitors $3.83 billion $228.40 million 484.93

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

Profitability

This table compares Toll Brothers and its rivals’ 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% 15.17% 8.23%

Risk and Volatility

Toll Brothers has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Toll Brothers’ rivals have a beta of 1.51, meaning that their average stock price is 51% more volatile than the S&P 500.

Insider and Institutional Ownership

81.3% of Toll Brothers shares are owned by institutional investors. Comparatively, 78.4% of shares of all “Homebuilding” companies are owned by institutional investors. 8.8% of Toll Brothers shares are owned by company insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Toll Brothers and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Toll Brothers 1 6 8 0 2.47
Toll Brothers Competitors 251 1523 1737 36 2.44

Toll Brothers currently has a consensus target price of $43.09, indicating a potential downside of 7.79%. As a group, “Homebuilding” companies have a potential downside of 0.90%. Given Toll Brothers’ rivals higher possible upside, analysts plainly believe Toll Brothers has less favorable growth aspects than its rivals.

Summary

Toll Brothers rivals beat Toll Brothers 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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