Toll Brothers (TOL) Competitors

D.R. Horton (NYSE:DHI) and Toll Brothers (NYSE:TOL) are both large-cap construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, media sentiment, community ranking, institutional ownership, valuation, earnings, risk, profitability and dividends.

Do institutionals and insiders hold more shares of DHI or TOL?

90.6% of D.R. Horton shares are held by institutional investors. Comparatively, 91.8% of Toll Brothers shares are held by institutional investors. 0.5% 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, large money managers and hedge funds believe a stock will outperform the market over the long term.

Which has more volatility and risk, DHI or TOL?

D.R. Horton has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Toll Brothers has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Do analysts recommend DHI or TOL?

D.R. Horton currently has a consensus price target of $151.15, suggesting a potential upside of 27.20%. Toll Brothers has a consensus price target of $143.29, suggesting a potential upside of 37.50%. Given Toll Brothers' stronger consensus rating and higher probable upside, analysts plainly believe Toll Brothers is more favorable than D.R. Horton.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D.R. Horton	2 Sell rating(s)	6 Hold rating(s)	6 Buy rating(s)	1 Strong Buy rating(s)	2.40
Toll Brothers	1 Sell rating(s)	5 Hold rating(s)	8 Buy rating(s)	1 Strong Buy rating(s)	2.60

Does the media favor DHI or TOL?

In the previous week, Toll Brothers had 32 more articles in the media than D.R. Horton. MarketBeat recorded 66 mentions for Toll Brothers and 34 mentions for D.R. Horton. D.R. Horton's average media sentiment score of 1.55 beat Toll Brothers' score of 0.69 indicating that D.R. Horton is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
D.R. Horton	32 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Toll Brothers	24 Very Positive mention(s)	6 Positive mention(s)	25 Neutral mention(s)	6 Negative mention(s)	0 Very Negative mention(s)	Positive

Is DHI or TOL more profitable?

Toll Brothers has a net margin of 14.03% compared to D.R. Horton's net margin of 12.69%. D.R. Horton's return on equity of 18.48% beat Toll Brothers' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
D.R. Horton	12.69%	18.48%	13.23%
Toll Brothers	14.03%	18.32%	10.34%

Which has better earnings and valuation, DHI or TOL?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
D.R. Horton	$35.32B	1.03	$4.76B	$13.21	9.00
Toll Brothers	$10.76B	0.97	$1.57B	$14.53	7.17

Does the MarketBeat Community favor DHI or TOL?

D.R. Horton received 5 more outperform votes than Toll Brothers when rated by MarketBeat users. Likewise, 59.34% of users gave D.R. Horton an outperform vote while only 56.78% of users gave Toll Brothers an outperform vote.

Company	Underperform	Outperform
D.R. Horton	Outperform Votes 667 59.34%	Underperform Votes 457 40.66%
Toll Brothers	Outperform Votes 662 56.78%	Underperform Votes 504 43.22%

Is DHI or TOL a better dividend stock?

D.R. Horton pays an annual dividend of $1.60 per share and has a dividend yield of 1.3%. Toll Brothers pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. D.R. Horton pays out 12.1% of its earnings in the form of a dividend. Toll Brothers pays out 6.9% 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 10 consecutive years and Toll Brothers has raised its dividend for 5 consecutive years. D.R. Horton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

D.R. Horton beats Toll Brothers on 11 of the 20 factors compared between the two stocks.