NVR, Inc. (NVR) vs Toll Brothers Inc. (TOL)

NVR, Inc. and Toll Brothers Inc. are both Residential Construction companies. NVR, Inc. is the larger, with a market value of $17.1B against $14.3B — 1.2× the size. Toll Brothers Inc. trades at the lower P/E: 12.4× against 16.9×. Toll Brothers Inc. grew revenue faster over the last twelve months: −1.08% against −10.9%. NVR, Inc. has the higher net margin (11.2% vs 11.1%) and the lower return on invested capital (0.00% vs 9.08%). Across the 22 metrics below, Toll Brothers Inc. leads on 16 and NVR, Inc. on 6.

Valuation

Metric NVR TOL Residential Construction median
P/E 16.86 12.38 15.45
P/S 1.83 1.35 1.32
P/B 4.97 1.71 1.24
Price to free cash flow 20.86 13.37 21.26
EV/EBITDA 10.54 10.28 12.52
EV/Sales 1.76 1.51 1.48
Earnings yield 5.93% 8.08% 6.38%
Free cash flow yield 4.79% 7.48% 4.64%

Profitability

Metric NVR TOL Residential Construction median
Gross margin 0.00% 23.75% 19.15%
Operating margin 0.00% 13.84% 7.50%
Net margin 11.23% 11.14% 6.72%
Free cash flow margin 8.78% 10.13% 8.39%
Return on equity 28.30% 14.39% 11.56%
Return on assets 18.05% 8.24% 6.99%
Return on invested capital 0.00% 9.08% 4.98%

Growth

Metric NVR TOL Residential Construction median
Revenue growth (TTM) (10.85%) (1.08%) (6.00%)
EPS growth (last fiscal year) (13.84%) (10.13%) (25.22%)
Revenue growth, 5-year CAGR 6.50% 9.15% 8.74%
Net income growth, 5-year CAGR 8.25% 24.70% 8.25%

Health

Metric NVR TOL Residential Construction median
Debt to equity 0.00 0.32 0.17
Current ratio 5.28 4.53 3.25
Net debt to EBITDA (0.88) 0.85 0.37

Dividend

Metric NVR TOL Residential Construction median
Dividend yield — 0.66% 1.15%
Payout ratio — 0.08 0.18

Size

Metric NVR TOL Residential Construction median
Market cap 17.09b 14.34b 4.72b

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