Installed Building Products, Inc. (IBP) vs Toll Brothers Inc. (TOL)

Installed Building Products, Inc. and Toll Brothers Inc. are both Residential Construction companies. Toll Brothers Inc. is the larger, with a market value of $12.5B against $5.2B — 2.4× the size. Toll Brothers Inc. trades at the lower P/E: 11.0× against 21.4×. Installed Building Products, Inc. grew revenue faster over the last twelve months: 0.27% against −1.08%. Toll Brothers Inc. has the higher net margin (11.1% vs 8.46%) and the lower return on invested capital (9.08% vs 17.5%). Both pay a dividend; Installed Building Products, Inc. yields more (0.93% vs 0.85%). Across the 23 metrics below, Toll Brothers Inc. leads on 15 and Installed Building Products, Inc. on 8.

Valuation

Metric IBP TOL Residential Construction median
P/E 21.44 10.95 13.51
P/S 1.80 1.20 1.02
P/B 8.34 1.51 1.17
Price to free cash flow 18.14 11.83 16.79
EV/EBITDA 11.56 9.22 10.48
EV/Sales 2.03 1.36 1.31
Earnings yield 4.66% 9.13% 7.37%
Free cash flow yield 5.51% 8.45% 5.73%

Profitability

Metric IBP TOL Residential Construction median
Gross margin 33.63% 23.75% 22.30%
Operating margin 12.41% 13.84% 9.03%
Net margin 8.46% 11.14% 7.30%
Free cash flow margin 9.92% 10.13% 8.46%
Return on equity 38.45% 14.39% 9.84%
Return on assets 11.74% 8.24% 7.43%
Return on invested capital 17.50% 9.08% 6.90%

Growth

Metric IBP TOL Residential Construction median
Revenue growth (TTM) 0.27% (1.08%) (7.37%)
EPS growth (last fiscal year) 6.70% (10.13%) —
Revenue growth, 5-year CAGR 12.44% 9.15% 8.74%
Net income growth, 5-year CAGR 22.24% 24.70% 8.43%

Health

Metric IBP TOL Residential Construction median
Debt to equity 1.67 0.32 0.20
Current ratio 2.98 4.53 3.56
Net debt to EBITDA 1.07 0.85 0.28

Dividend

Metric IBP TOL Residential Construction median
Dividend yield 0.93% 0.85% 0.89%
Payout ratio 0.15 0.06 0.00

Size

Metric IBP TOL Residential Construction median
Market cap 5.22b 12.54b 4.18b

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