TOL vs. MTH, KBH, TPH, MHO, NVR, PHM, DHI, TMHC, FND, and BLD
Should you be buying Toll Brothers stock or one of its competitors? The main competitors of Toll Brothers include Meritage Homes (MTH), KB Home (KBH), Tri Pointe Homes (TPH), M/I Homes (MHO), NVR (NVR), PulteGroup (PHM), D.R. Horton (DHI), Taylor Morrison Home (TMHC), Floor & Decor (FND), and TopBuild (BLD). These companies are all part of the "construction" sector.
Meritage Homes (NYSE:MTH) and Toll Brothers (NYSE:TOL) are both construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their community ranking, analyst recommendations, valuation, dividends, media sentiment, risk, profitability, earnings and institutional ownership.
Toll Brothers has higher revenue and earnings than Meritage Homes. Meritage Homes is trading at a lower price-to-earnings ratio than Toll Brothers, indicating that it is currently the more affordable of the two stocks.
Meritage Homes pays an annual dividend of $3.00 per share and has a dividend yield of 1.6%. Toll Brothers pays an annual dividend of $0.92 per share and has a dividend yield of 0.7%. Meritage Homes pays out 14.0% of its earnings in the form of a dividend. Toll Brothers pays out 7.1% 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. Meritage Homes has increased its dividend for 1 consecutive years and Toll Brothers has increased its dividend for 4 consecutive years.
Meritage Homes has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Toll Brothers has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.
98.4% of Meritage Homes shares are held by institutional investors. Comparatively, 91.8% of Toll Brothers shares are held by institutional investors. 2.0% of Meritage Homes 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
In the previous week, Toll Brothers had 10 more articles in the media than Meritage Homes. MarketBeat recorded 21 mentions for Toll Brothers and 11 mentions for Meritage Homes. Toll Brothers' average media sentiment score of 0.81 beat Meritage Homes' score of 0.71 indicating that Meritage Homes is being referred to more favorably in the media.
Toll Brothers has a net margin of 13.97% compared to Toll Brothers' net margin of 12.54%. Meritage Homes' return on equity of 21.04% beat Toll Brothers' return on equity.
Meritage Homes presently has a consensus target price of $178.25, indicating a potential downside of 2.60%. Toll Brothers has a consensus target price of $116.40, indicating a potential downside of 10.97%. Given Toll Brothers' higher probable upside, equities research analysts clearly believe Meritage Homes is more favorable than Toll Brothers.
Toll Brothers received 193 more outperform votes than Meritage Homes when rated by MarketBeat users. Likewise, 57.20% of users gave Toll Brothers an outperform vote while only 55.40% of users gave Meritage Homes an outperform vote.
Summary
Toll Brothers beats Meritage Homes on 14 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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