Taylor Morrison Home Corp vs Toll Brothers, Inc., two Homebuilders stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Toll Brothers earns better economics than Taylor Morrison, a 15.18% return on equity against 10.69% and an 11.66% margin against 8.77%, its luxury focus more profitable than Taylor Morrison's broader mix. Toll runs debt-free; Taylor Morrison carries 0.37 turns. Both trade cheaply, Toll at 12.4 times earnings and 1.85 times book, Taylor Morrison at 10.7 and 1.12, the cheaper of the two. Taylor Morrison converts more free cash, 9.82% against 7.73%. The pair prices a luxury builder against a value-priced mid-cap: Toll earns higher margins and returns on a cleaner balance sheet, Taylor Morrison trades at a deeper discount with stronger cash conversion, setting Toll's quality against Taylor Morrison's cheapness.
Comparison updated 2026-07-11.
| Metric | TMHC | TOL |
|---|---|---|
| Price | $71.87 | $149.36 |
| Market cap | $7.0B | $14.3B |
| Sector | Homebuilders | Homebuilders |
| Stage | Mature | Mature |
| Implied growth (priced in) | — | +0.6% |
| P/E | 10.7 | 11.3 |
| P/B | 1.12 | 1.69 |
| P/S | 0.92 | 1.29 |
| EV/EBITDA | 810.3 | 8.1 |
| Revenue growth | -9.2% | +4.6% |
| Gross margin | 20.9% | — |
| Operating margin | — | 13.7% |
| Net margin | 8.8% | 11.7% |
| Return on equity | 10.7% | 15.2% |
| Return on assets | 6.8% | 8.9% |
| Return on invested capital | — | 15.1% |
| FCF yield | 9.8% | 8.5% |
| Dividend yield | — | 0.7% |
| Debt / equity | 0.37 | 0.00 |
| Altman Z (solvency) | 1.97 | 3.12 |
| Piotroski F (quality) | 4 / 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.