LENNAR CORP /NEW/ vs Toll Brothers, Inc., two Homebuilders stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Lennar builds volume homes; Toll Brothers builds luxury ones, and Toll's high-end focus earns much better economics: a 15.18% return on equity against Lennar's 8.12% and an 11.66% margin against 5.39%. Both run debt-free and trade near book, Toll at 1.85 times and Lennar at 1.04. Toll converts a strong 7.73% free cash against Lennar's slightly negative figure and is cheaper on earnings, 12.4 times against 13.5. The pair splits homebuilding by buyer: Toll earns luxury margins and returns serving wealthy purchasers, Lennar earns thinner volume margins at a deeper discount to book, and Toll's better profitability at a similar or lower multiple makes it the stronger name here.
Comparison updated 2026-07-11.
| Metric | LEN | TOL |
|---|---|---|
| Price | $84.25 | $149.36 |
| Market cap | $20.3B | $14.3B |
| Sector | Homebuilders | Homebuilders |
| Stage | Mature | Mature |
| Implied growth (priced in) | — | +0.6% |
| P/E | 13.2 | 11.3 |
| P/B | 0.93 | 1.69 |
| P/S | 0.62 | 1.29 |
| EV/EBITDA | — | 8.1 |
| Revenue growth | -7.7% | +4.6% |
| Operating margin | — | 13.7% |
| Net margin | 4.9% | 11.7% |
| Return on equity | 7.4% | 15.2% |
| Return on assets | 4.8% | 8.9% |
| Return on invested capital | — | 15.1% |
| FCF yield | 3.5% | 8.5% |
| Dividend yield | — | 0.7% |
| Debt / equity | 0.00 | 0.00 |
| Altman Z (solvency) | 2.94 | 3.12 |
| Piotroski F (quality) | 7 / 9 | 8 / 9 |
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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.