TOL vs. DHI, LEN, PHM, NVR, MTH, KBH, TPH, MHO, CVCO, and HOV
Should you be buying Toll Brothers stock or one of its competitors? The main competitors of Toll Brothers include D.R. Horton (DHI), Lennar (LEN), PulteGroup (PHM), NVR (NVR), Meritage Homes (MTH), KB Home (KBH), Tri Pointe Homes (TPH), M/I Homes (MHO), Cavco Industries (CVCO), and Hovnanian Enterprises (HOV). These companies are all part of the "homebuilding" industry.
D.R. Horton (NYSE:DHI) and Toll Brothers (NYSE:TOL) are both large-cap construction companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, media sentiment, valuation, institutional ownership, analyst recommendations, community ranking and earnings.
90.6% of D.R. Horton shares are held by institutional investors. Comparatively, 91.8% of Toll Brothers shares are held by institutional investors. 1.7% of D.R. Horton shares are held by company insiders. Comparatively, 1.5% of Toll Brothers shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
D.R. Horton presently has a consensus target price of $158.31, indicating a potential upside of 12.60%. Toll Brothers has a consensus target price of $124.75, indicating a potential upside of 7.19%. Given Toll Brothers' higher probable upside, equities research analysts clearly believe D.R. Horton is more favorable than Toll Brothers.
D.R. Horton pays an annual dividend of $1.20 per share and has a dividend yield of 0.9%. Toll Brothers pays an annual dividend of $0.92 per share and has a dividend yield of 0.8%. D.R. Horton pays out 8.2% of its earnings in the form of a dividend. Toll Brothers pays out 6.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. D.R. Horton has raised its dividend for 9 consecutive years and Toll Brothers has raised its dividend for 4 consecutive years. D.R. Horton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
D.R. Horton received 13 more outperform votes than Toll Brothers when rated by MarketBeat users. Likewise, 60.06% of users gave D.R. Horton an outperform vote while only 57.29% of users gave Toll Brothers an outperform vote.
D.R. Horton has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Toll Brothers has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.
D.R. Horton has higher revenue and earnings than Toll Brothers. Toll Brothers is trading at a lower price-to-earnings ratio than D.R. Horton, indicating that it is currently the more affordable of the two stocks.
In the previous week, Toll Brothers had 23 more articles in the media than D.R. Horton. MarketBeat recorded 30 mentions for Toll Brothers and 7 mentions for D.R. Horton. Toll Brothers' average media sentiment score of 1.58 beat D.R. Horton's score of 0.64 indicating that D.R. Horton is being referred to more favorably in the media.
Toll Brothers has a net margin of 15.07% compared to Toll Brothers' net margin of 13.39%. Toll Brothers' return on equity of 21.32% beat D.R. Horton's return on equity.
Summary
D.R. Horton beats Toll Brothers on 16 of the 22 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TOL and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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