KBH vs. TOL: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at KBH and TOL, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | KBH | TOL |
|---|---|---|
| Company Name | KB Home | Toll Brothers, Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry | Household Durables | Household Durables |
| Market Capitalization | 4.34 billion USD | 13.09 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | August 1, 1986 | July 8, 1986 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of KBH and TOL by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | KBH | TOL |
|---|---|---|
| 5-Day Price Return | 8.41% | 5.97% |
| 13-Week Price Return | 13.50% | 22.89% |
| 26-Week Price Return | -4.08% | 0.29% |
| 52-Week Price Return | -19.63% | 4.47% |
| Month-to-Date Return | 15.29% | 12.66% |
| Year-to-Date Return | -3.06% | 5.88% |
| 10-Day Avg. Volume | 1.44M | 1.30M |
| 3-Month Avg. Volume | 1.47M | 1.75M |
| 3-Month Volatility | 40.28% | 37.03% |
| Beta | 1.42 | 1.43 |
Profitability
Return on Equity (TTM)
KBH
14.02%
Household Durables Industry
- Max
- 26.99%
- Q3
- 17.28%
- Median
- 12.66%
- Q1
- 7.34%
- Min
- 0.07%
KBH’s Return on Equity of 14.02% is on par with the norm for the Household Durables industry, indicating its profitability relative to shareholder equity is typical for the sector.
TOL
17.91%
Household Durables Industry
- Max
- 26.99%
- Q3
- 17.28%
- Median
- 12.66%
- Q1
- 7.34%
- Min
- 0.07%
In the upper quartile for the Household Durables industry, TOL’s Return on Equity of 17.91% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
KBH
8.47%
Household Durables Industry
- Max
- 15.50%
- Q3
- 8.99%
- Median
- 6.57%
- Q1
- 4.33%
- Min
- -0.49%
KBH’s Net Profit Margin of 8.47% is aligned with the median group of its peers in the Household Durables industry. This indicates its ability to convert revenue into profit is typical for the sector.
TOL
12.95%
Household Durables Industry
- Max
- 15.50%
- Q3
- 8.99%
- Median
- 6.57%
- Q1
- 4.33%
- Min
- -0.49%
A Net Profit Margin of 12.95% places TOL in the upper quartile for the Household Durables industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
KBH
10.39%
Household Durables Industry
- Max
- 20.22%
- Q3
- 12.29%
- Median
- 9.54%
- Q1
- 6.30%
- Min
- -1.92%
KBH’s Operating Profit Margin of 10.39% is around the midpoint for the Household Durables industry, indicating that its efficiency in managing core business operations is typical for the sector.
TOL
16.67%
Household Durables Industry
- Max
- 20.22%
- Q3
- 12.29%
- Median
- 9.54%
- Q1
- 6.30%
- Min
- -1.92%
An Operating Profit Margin of 16.67% places TOL in the upper quartile for the Household Durables industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | KBH | TOL |
|---|---|---|
| Return on Equity (TTM) | 14.02% | 17.91% |
| Return on Assets (TTM) | 8.14% | 10.12% |
| Net Profit Margin (TTM) | 8.47% | 12.95% |
| Operating Profit Margin (TTM) | 10.39% | 16.67% |
| Gross Profit Margin (TTM) | 20.58% | 26.21% |
Financial Strength
Current Ratio (MRQ)
KBH
6.09
Household Durables Industry
- Max
- 9.23
- Q3
- 4.50
- Median
- 2.35
- Q1
- 1.29
- Min
- 0.70
KBH’s Current Ratio of 6.09 is in the upper quartile for the Household Durables industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
TOL
3.54
Household Durables Industry
- Max
- 9.23
- Q3
- 4.50
- Median
- 2.35
- Q1
- 1.29
- Min
- 0.70
TOL’s Current Ratio of 3.54 aligns with the median group of the Household Durables industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
KBH
0.47
Household Durables Industry
- Max
- 1.84
- Q3
- 0.90
- Median
- 0.34
- Q1
- 0.19
- Min
- 0.00
KBH’s Debt-to-Equity Ratio of 0.47 is typical for the Household Durables industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
TOL
0.35
Household Durables Industry
- Max
- 1.84
- Q3
- 0.90
- Median
- 0.34
- Q1
- 0.19
- Min
- 0.00
TOL’s Debt-to-Equity Ratio of 0.35 is typical for the Household Durables industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
KBH
14.61
Household Durables Industry
- Max
- 140.40
- Q3
- 77.14
- Median
- 24.53
- Q1
- 5.69
- Min
- -17.01
KBH’s Interest Coverage Ratio of 14.61 is positioned comfortably within the norm for the Household Durables industry, indicating a standard and healthy capacity to cover its interest payments.
TOL
-8.67
Household Durables Industry
- Max
- 140.40
- Q3
- 77.14
- Median
- 24.53
- Q1
- 5.69
- Min
- -17.01
TOL has a negative Interest Coverage Ratio of -8.67. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | KBH | TOL |
|---|---|---|
| Current Ratio (MRQ) | 6.09 | 3.54 |
| Quick Ratio (MRQ) | 0.63 | 0.28 |
| Debt-to-Equity Ratio (MRQ) | 0.47 | 0.35 |
| Interest Coverage Ratio (TTM) | 14.61 | -8.67 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
KBH
1.69%
Household Durables Industry
- Max
- 8.95%
- Q3
- 4.19%
- Median
- 1.88%
- Q1
- 0.03%
- Min
- 0.00%
KBH’s Dividend Yield of 1.69% is consistent with its peers in the Household Durables industry, providing a dividend return that is standard for its sector.
TOL
0.75%
Household Durables Industry
- Max
- 8.95%
- Q3
- 4.19%
- Median
- 1.88%
- Q1
- 0.03%
- Min
- 0.00%
TOL’s Dividend Yield of 0.75% is consistent with its peers in the Household Durables industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
KBH
12.90%
Household Durables Industry
- Max
- 125.12%
- Q3
- 62.43%
- Median
- 39.18%
- Q1
- 5.55%
- Min
- 0.00%
KBH’s Dividend Payout Ratio of 12.90% is within the typical range for the Household Durables industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TOL
6.91%
Household Durables Industry
- Max
- 125.12%
- Q3
- 62.43%
- Median
- 39.18%
- Q1
- 5.55%
- Min
- 0.00%
TOL’s Dividend Payout Ratio of 6.91% is within the typical range for the Household Durables industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | KBH | TOL |
|---|---|---|
| Dividend Yield (TTM) | 1.69% | 0.75% |
| Dividend Payout Ratio (TTM) | 12.90% | 6.91% |
Valuation
Price-to-Earnings Ratio (TTM)
KBH
7.64
Household Durables Industry
- Max
- 29.75
- Q3
- 18.88
- Median
- 13.25
- Q1
- 9.26
- Min
- 6.32
In the lower quartile for the Household Durables industry, KBH’s P/E Ratio of 7.64 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
TOL
9.24
Household Durables Industry
- Max
- 29.75
- Q3
- 18.88
- Median
- 13.25
- Q1
- 9.26
- Min
- 6.32
In the lower quartile for the Household Durables industry, TOL’s P/E Ratio of 9.24 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
KBH
0.65
Household Durables Industry
- Max
- 2.12
- Q3
- 1.21
- Median
- 0.83
- Q1
- 0.51
- Min
- 0.18
KBH’s P/S Ratio of 0.65 aligns with the market consensus for the Household Durables industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
TOL
1.20
Household Durables Industry
- Max
- 2.12
- Q3
- 1.21
- Median
- 0.83
- Q1
- 0.51
- Min
- 0.18
TOL’s P/S Ratio of 1.20 aligns with the market consensus for the Household Durables industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
KBH
0.87
Household Durables Industry
- Max
- 4.21
- Q3
- 2.29
- Median
- 1.34
- Q1
- 0.98
- Min
- 0.59
KBH’s P/B Ratio of 0.87 is in the lower quartile for the Household Durables industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
TOL
1.26
Household Durables Industry
- Max
- 4.21
- Q3
- 2.29
- Median
- 1.34
- Q1
- 0.98
- Min
- 0.59
TOL’s P/B Ratio of 1.26 is within the conventional range for the Household Durables industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | KBH | TOL |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 7.64 | 9.24 |
| Price-to-Sales Ratio (TTM) | 0.65 | 1.20 |
| Price-to-Book Ratio (MRQ) | 0.87 | 1.26 |
| Price-to-Free Cash Flow Ratio (TTM) | 8.48 | 10.98 |