Taylor Morrison Home Corp (NASDAQ: TMHC) and Toll Brothers (NYSE:TOL) are both cyclical consumer goods & services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.
Toll Brothers pays an annual dividend of $0.32 per share and has a dividend yield of 0.8%. Taylor Morrison Home Corp does not pay a dividend. Toll Brothers pays out 13.2% of its earnings in the form of a dividend.
This is a summary of recent recommendations and price targets for Taylor Morrison Home Corp and Toll Brothers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Taylor Morrison Home Corp||0||5||1||0||2.17|
Taylor Morrison Home Corp presently has a consensus price target of $22.20, suggesting a potential upside of 4.18%. Toll Brothers has a consensus price target of $39.27, suggesting a potential upside of 2.94%. Given Taylor Morrison Home Corp’s higher possible upside, equities research analysts clearly believe Taylor Morrison Home Corp is more favorable than Toll Brothers.
Institutional and Insider Ownership
80.3% of Toll Brothers shares are held by institutional investors. 8.8% of Toll Brothers shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Taylor Morrison Home Corp and Toll Brothers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Taylor Morrison Home Corp||6.16%||9.57%||5.34%|
Valuation and Earnings
This table compares Taylor Morrison Home Corp and Toll Brothers’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Taylor Morrison Home Corp||$3.73 billion||0.41||$344.81 million||N/A||N/A|
|Toll Brothers||$5.41 billion||1.15||$507.09 million||$2.43||15.70|
Toll Brothers has higher revenue and earnings than Taylor Morrison Home Corp.
Toll Brothers beats Taylor Morrison Home Corp on 11 of the 14 factors compared between the two stocks.
Taylor Morrison Home Corp Company Profile
Taylor Morrison Home Corporation is a homebuilder, which designs, builds and sells single-family detached and attached homes. The Company is also a land developer, with a portfolio of lifestyle and master-planned communities. Its segments include East, which includes Atlanta, Charlotte, North Florida, Raleigh, Southwest Florida and Tampa; Central, which includes Austin, Dallas, and Houston (each of the Dallas and Houston markets include both a Taylor Morrison division and a Darling Homes division); West, which includes Bay Area, Chicago, Denver, Phoenix, Sacramento and Southern California, and Mortgage Operations, which includes Taylor Morrison Home Funding, LLC (TMHF) and Inspired Title Services, LLC (Inspired Title). It operates under the Taylor Morrison and Darling Homes brand names. The Company also provides financial services to customers through its mortgage subsidiary, TMHF, and title insurance and closing settlement services through its title company, Inspired Title.
Toll Brothers Company Profile
Toll Brothers, Inc. is engaged in designing, building, marketing, selling and arranging financing for detached and attached homes in luxury residential communities. The Company operates through two segments: Traditional Home Building and Toll Brothers City Living (City Living). Within the Traditional Home Building segment, it operates in five geographic segments in the United States: the North, consisting of Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey and New York; the Mid-Atlantic, consisting of Delaware, Maryland, Pennsylvania and Virginia; the South, consisting of Florida, North Carolina and Texas; the West, consisting of Arizona, Colorado, Nevada and Washington, and California. City Living is the Company’s urban development division. Its products include Traditional Home Building Product and City Living Product. Its Traditional Home Building Product includes detached homes, move-up, executive, estate, and active-adult and age-qualified lines of home.
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