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 $16.6B against $12.5B — 1.3× the size. Toll Brothers Inc. trades at the lower P/E: 11.0× against 15.5×. Toll Brothers Inc. grew revenue faster over the last twelve months: −1.08% against −9.93%. NVR, Inc. has the higher net margin (12.0% vs 11.1%) and the higher return on invested capital (34.9% vs 9.08%). Across the 22 metrics below, Toll Brothers Inc. leads on 13 and NVR, Inc. on 9.

Valuation

Metric NVR TOL Residential Construction median
P/E 15.48 10.95 13.51
P/S 1.78 1.20 1.02
P/B 5.01 1.51 1.17
Price to free cash flow 16.23 11.83 16.79
EV/EBITDA 10.48 9.22 10.48
EV/Sales 1.71 1.36 1.31
Earnings yield 6.46% 9.13% 7.37%
Free cash flow yield 6.16% 8.45% 5.73%

Profitability

Metric NVR TOL Residential Construction median
Gross margin 21.99% 23.75% 22.30%
Operating margin 16.04% 13.84% 9.03%
Net margin 11.98% 11.14% 7.30%
Free cash flow margin 10.99% 10.13% 8.46%
Return on equity 31.54% 14.39% 9.84%
Return on assets 20.01% 8.24% 7.43%
Return on invested capital 34.92% 9.08% 6.90%

Growth

Metric NVR TOL Residential Construction median
Revenue growth (TTM) (9.93%) (1.08%) (7.37%)
EPS growth (last fiscal year) (13.84%) (10.13%) —
Revenue growth, 5-year CAGR 6.50% 9.15% 8.74%
Net income growth, 5-year CAGR 8.25% 24.70% 8.43%

Health

Metric NVR TOL Residential Construction median
Debt to equity 0.27 0.32 0.20
Current ratio 5.28 4.53 3.56
Net debt to EBITDA (0.88) 0.85 0.28

Dividend

Metric NVR TOL Residential Construction median
Dividend yield — 0.85% 0.89%
Payout ratio 0.00 0.06 0.00

Size

Metric NVR TOL Residential Construction median
Market cap 16.62b 12.54b 4.18b

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