Tri Pointe Homes vs Toll Brothers Which Is More Favorable?

Tri Pointe Homes and Toll Brothers are both leading players in the homebuilding industry, with a track record of constructing quality homes across the United States. While Tri Pointe Homes focuses on entry-level and move-up homes, Toll Brothers targets the luxury home market. Both companies have experienced growth in recent years, but with distinct strategies and market segments. Investors looking to capitalize on the housing market may consider weighing the differences between Tri Pointe Homes and Toll Brothers stocks to make informed investment decisions.

Tri Pointe Homes or Toll Brothers?

When comparing Tri Pointe Homes and Toll Brothers, 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 Tri Pointe Homes and Toll Brothers.

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. Tri Pointe Homes has a dividend yield of -%, while Toll Brothers has a dividend yield of 0.67%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Tri Pointe Homes reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Toll Brothers reports a 5-year dividend growth of 15.15% year and a payout ratio of 5.88%.

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 Tri Pointe Homes P/E ratio at 7.91 and Toll Brothers's P/E ratio at 8.67. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Tri Pointe Homes P/B ratio is 1.12 while Toll Brothers's P/B ratio is 1.77.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $38.90 for Tri Pointe Homes and $132.31 for Toll Brothers. Over the past year, Tri Pointe Homes's prices ranged from $32.79 to $47.78, with a yearly change of 45.72%. Toll Brothers's prices fluctuated between $95.46 and $169.52, with a yearly change of 77.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.