Toll Brothers (NYSE:TOL – Get Free Report) is one of 150 public companies in the “Household Durables” industry, but how does it contrast to its competitors? We will compare Toll Brothers to similar companies based on the strength of its valuation, analyst recommendations, institutional ownership, earnings, risk, dividends and profitability.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Toll Brothers and its competitors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Toll Brothers | 1 | 4 | 14 | 1 | 2.75 |
| Toll Brothers Competitors | 1803 | 7415 | 8146 | 316 | 2.39 |
Toll Brothers presently has a consensus price target of $166.67, suggesting a potential upside of 14.19%. As a group, “Household Durables” companies have a potential upside of 48.51%. Given Toll Brothers’ competitors higher probable upside, analysts plainly believe Toll Brothers has less favorable growth aspects than its competitors.
Institutional & Insider Ownership
91.8% of Toll Brothers shares are owned by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are owned by institutional investors. 1.4% of Toll Brothers shares are owned by company insiders. Comparatively, 18.3% of shares of all “Household Durables” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Toll Brothers has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Toll Brothers’ competitors have a beta of 1.76, suggesting that their average share price is 76% more volatile than the S&P 500.
Earnings and Valuation
This table compares Toll Brothers and its competitors gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Toll Brothers | $10.97 billion | $1.35 billion | 11.71 |
| Toll Brothers Competitors | $5.32 billion | $320.74 million | 8.52 |
Toll Brothers has higher revenue and earnings than its competitors. Toll Brothers is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Dividends
Toll Brothers pays an annual dividend of $1.04 per share and has a dividend yield of 0.7%. Toll Brothers pays out 8.3% of its earnings in the form of a dividend. As a group, “Household Durables” companies pay a dividend yield of 4.2% and pay out 32.5% of their earnings in the form of a dividend. Toll Brothers has increased its dividend for 5 consecutive years.
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 | 11.14% | 14.21% | 8.24% |
| Toll Brothers Competitors | -2.73% | -17.15% | 1.17% |
Summary
Toll Brothers beats its competitors on 11 of the 15 factors compared.
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.
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