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.
Toll Brothers (NYSE:TOL) and Meritage Homes (NYSE:MTH) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, community ranking, earnings, media sentiment, dividends, risk and analyst recommendations.
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.
91.8% of Toll Brothers shares are owned by institutional investors. Comparatively, 98.4% of Meritage Homes shares are owned by institutional investors. 1.5% of Toll Brothers shares are owned by company insiders. Comparatively, 2.0% of Meritage Homes shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
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 pays an annual dividend of $0.92 per share and has a dividend yield of 0.7%. Meritage Homes pays an annual dividend of $3.00 per share and has a dividend yield of 1.6%. 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.
Toll Brothers currently has a consensus target price of $116.40, indicating a potential downside of 10.97%. Meritage Homes has a consensus target price of $178.25, indicating a potential downside of 2.60%. Given Meritage Homes' higher probable upside, analysts plainly believe Meritage Homes is more favorable than Toll Brothers.
In the previous week, Toll Brothers had 11 more articles in the media than Meritage Homes. MarketBeat recorded 23 mentions for Toll Brothers and 12 mentions for Meritage Homes. Meritage Homes' average media sentiment score of 0.76 beat Toll Brothers' score of 0.62 indicating that Meritage Homes is being referred to more favorably in the news media.
Toll Brothers has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, Meritage Homes has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.
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.
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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