TOL vs. MTH, KBH, TPH, MHO, PHM, NVR, DHI, TMHC, DFH, and WMS
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), PulteGroup (PHM), NVR (NVR), D.R. Horton (DHI), Taylor Morrison Home (TMHC), Dream Finders Homes (DFH), and Advanced Drainage Systems (WMS). These companies are all part of the "construction" sector.
Toll Brothers (NYSE:TOL) and Meritage Homes (NYSE:MTH) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, community ranking, institutional ownership, media sentiment and risk.
In the previous week, Meritage Homes had 7 more articles in the media than Toll Brothers. MarketBeat recorded 24 mentions for Meritage Homes and 17 mentions for Toll Brothers. Toll Brothers' average media sentiment score of 0.79 beat Meritage Homes' score of 0.57 indicating that Toll Brothers is being referred to more favorably in the media.
Toll Brothers received 192 more outperform votes than Meritage Homes when rated by MarketBeat users. Likewise, 57.26% of users gave Toll Brothers an outperform vote while only 55.54% of users gave Meritage Homes an outperform vote.
Toll Brothers has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Meritage Homes has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.
Toll Brothers has a net margin of 13.97% compared to Meritage Homes' net margin of 12.54%. Toll Brothers' return on equity of 21.04% beat Meritage Homes' return on equity.
Toll Brothers presently has a consensus target price of $113.80, suggesting a potential downside of 5.34%. Meritage Homes has a consensus target price of $172.67, suggesting a potential upside of 1.88%. Given Meritage Homes' higher possible upside, analysts plainly believe Meritage Homes is more favorable than Toll Brothers.
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.
91.8% of Toll Brothers shares are held by institutional investors. Comparatively, 98.4% of Meritage Homes shares are held by institutional investors. 1.5% of Toll Brothers shares are held by company insiders. Comparatively, 2.0% of Meritage Homes shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Toll Brothers pays an annual dividend of $0.92 per share and has a dividend yield of 0.8%. Meritage Homes pays an annual dividend of $3.00 per share and has a dividend yield of 1.8%. Toll Brothers pays out 7.1% of its earnings in the form of a dividend. Meritage Homes pays out 14.0% 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.
Summary
Toll Brothers beats Meritage Homes on 13 of the 21 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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