Toll Brothers vs Tri Pointe Homes Which Offers More Value?

Toll Brothers and Tri Pointe Homes are two major players in the real estate development industry, both publicly traded on the stock market. Toll Brothers, founded in 1967, is known for its luxury homes and high-end developments, while Tri Pointe Homes, established in 2009, focuses on creating more affordable housing options. Investors interested in the real estate sector may consider comparing the performance and growth potential of these two companies to make informed decisions on their stock investments.

Toll Brothers or Tri Pointe Homes?

When comparing Toll Brothers and Tri Pointe Homes, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Toll Brothers and Tri Pointe Homes.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Toll Brothers has a dividend yield of 0.65%, while Tri Pointe Homes has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Toll Brothers reports a 5-year dividend growth of 15.15% year and a payout ratio of 5.88%. On the other hand, Tri Pointe Homes reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Toll Brothers P/E ratio at 8.96 and Tri Pointe Homes's P/E ratio at 8.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Toll Brothers P/B ratio is 1.84 while Tri Pointe Homes's P/B ratio is 1.15.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Toll Brothers has seen a 5-year revenue growth of 0.93%, while Tri Pointe Homes's is 0.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Toll Brothers's ROE at 21.37% and Tri Pointe Homes's ROE at 14.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $138.12 for Toll Brothers and $39.97 for Tri Pointe Homes. Over the past year, Toll Brothers's prices ranged from $95.46 to $169.52, with a yearly change of 77.58%. Tri Pointe Homes's prices fluctuated between $32.63 and $47.78, with a yearly change of 46.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.