PulteGroup, Inc. (PHM) vs Toll Brothers Inc. (TOL)

PulteGroup, Inc. and Toll Brothers Inc. are both Residential Construction companies. PulteGroup, Inc. is the larger, with a market value of $22.0B against $12.5B — 1.8× the size. Toll Brothers Inc. trades at the lower P/E: 11.0× against 12.2×. Toll Brothers Inc. grew revenue faster over the last twelve months: −1.08% against −7.28%. PulteGroup, Inc. has the higher net margin (11.6% vs 11.1%) and the higher return on invested capital (11.2% vs 9.08%). Both pay a dividend; Toll Brothers Inc. yields more (0.85% vs 0.74%). Across the 23 metrics below, Toll Brothers Inc. leads on 13 and PulteGroup, Inc. on 10.

Valuation

Metric PHM TOL Residential Construction median
P/E 12.16 10.95 13.51
P/S 1.38 1.20 1.02
P/B 1.74 1.51 1.17
Price to free cash flow 15.01 11.83 16.79
EV/EBITDA 8.99 9.22 10.48
EV/Sales 1.44 1.36 1.31
Earnings yield 8.23% 9.13% 7.37%
Free cash flow yield 6.66% 8.45% 5.73%

Profitability

Metric PHM TOL Residential Construction median
Gross margin 25.15% 23.75% 22.30%
Operating margin 15.16% 13.84% 9.03%
Net margin 11.62% 11.14% 7.30%
Free cash flow margin 9.22% 10.13% 8.46%
Return on equity 14.90% 14.39% 9.84%
Return on assets 10.64% 8.24% 7.43%
Return on invested capital 11.15% 9.08% 6.90%

Growth

Metric PHM TOL Residential Construction median
Revenue growth (TTM) (7.28%) (1.08%) (7.37%)
EPS growth (last fiscal year) (24.30%) (10.13%) —
Revenue growth, 5-year CAGR 9.42% 9.15% 8.74%
Net income growth, 5-year CAGR 9.73% 24.70% 8.43%

Health

Metric PHM TOL Residential Construction median
Debt to equity 0.18 0.32 0.20
Current ratio 0.78 4.53 3.56
Net debt to EBITDA 0.05 0.85 0.28

Dividend

Metric PHM TOL Residential Construction median
Dividend yield 0.74% 0.85% 0.89%
Payout ratio 0.05 0.06 0.00

Size

Metric PHM TOL Residential Construction median
Market cap 21.96b 12.54b 4.18b

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