KB HOME vs Toll Brothers, Inc., two Homebuilders stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
KB Home builds entry-level homes, Toll Brothers luxury ones, and Toll earns much better economics: a 15.18% return on equity against KB's 9.15% and an 11.66% margin against 5.96%, luxury pricing power against entry-level volume. Both run debt-free and trade near book, Toll at 1.85 times and KB at 1.03. KB converts more free cash this year, 12.47% against 7.73%, and pays a bigger dividend. The pair splits homebuilding by price point: Toll earns fatter margins and higher returns serving wealthy buyers at a modest premium to book, KB serves budget-conscious ones at liquidation value with strong cash flow, and Toll's superior returns come at the cost of KB's deeper discount.
Comparison updated 2026-07-11.
| Metric | KBH | TOL |
|---|---|---|
| Price | $56.29 | $149.36 |
| Market cap | $3.5B | $14.3B |
| Sector | Homebuilders | Homebuilders |
| Stage | Mature | Mature |
| Implied growth (priced in) | +7.6% | +0.6% |
| P/E | 13.7 | 11.3 |
| P/B | 0.93 | 1.69 |
| P/S | 0.64 | 1.29 |
| EV/EBITDA | 349.0 | 8.1 |
| Revenue growth | -18.2% | +4.6% |
| Operating margin | — | 13.7% |
| Net margin | 4.9% | 11.7% |
| Return on equity | 7.2% | 15.2% |
| Return on assets | 4.0% | 8.9% |
| Return on invested capital | — | 15.1% |
| FCF yield | 10.2% | 8.5% |
| Dividend yield | 1.8% | 0.7% |
| Debt / equity | 0.00 | 0.00 |
| Altman Z (solvency) | 7.44 | 3.12 |
| Piotroski F (quality) | 9 / 9 | 8 / 9 |
Each week boothcheck ranks the stocks whose prices are betting on the most. Read the most stretched bets archive →
boothcheck is also on Android. Get the app on Google Play →
The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.