WallStSmart

Dream Finders Homes Inc (DFH)vsToll Brothers Inc (TOL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Toll Brothers Inc generates 160% more annual revenue ($10.76B vs $4.13B). TOL leads profitability with a 11.1% profit margin vs 3.5%. DFH trades at a lower P/E of 6.2x. TOL earns a higher WallStSmart Score of 59/100 (C).

DFH

Hold

42

out of 100

Grade: D

Growth: 3.3Profit: 5.0Value: 8.3Quality: 7.5
Piotroski: 2/9Altman Z: 2.79

TOL

Buy

59

out of 100

Grade: C

Growth: 2.7Profit: 6.0Value: 6.7Quality: 8.0
Piotroski: 3/9Altman Z: 3.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DFHUndervalued (+38.9%)

Margin of Safety

+38.9%

Fair Value

$33.71

Current Price

$10.12

$23.59 discount

UndervaluedFair: $33.71Overvalued
TOLSignificantly Overvalued (-39.4%)

Margin of Safety

-39.4%

Fair Value

$95.93

Current Price

$141.12

$45.19 premium

UndervaluedFair: $95.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DFH2 strengths · Avg: 10.0/10
P/E RatioValuation
6.2x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

TOL4 strengths · Avg: 9.0/10
P/E RatioValuation
10.7x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.6010/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.878/10

Growing faster than its price suggests

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Areas to Watch

DFH4 concerns · Avg: 3.0/10
Market CapQuality
$795.80M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Operating MarginProfitability
2.4%3/10

Operating margin of 2.4%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

TOL3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-9.7%2/10

Revenue declined 9.7%

EPS GrowthGrowth
-20.4%2/10

Earnings declined 20.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : DFH

The strongest argument for DFH centers on P/E Ratio, Price/Book.

Bull Case : TOL

The strongest argument for TOL centers on P/E Ratio, Altman Z-Score, PEG Ratio. PEG of 0.87 suggests the stock is reasonably priced for its growth.

Bear Case : DFH

The primary concerns for DFH are Market Cap, Profit Margin, Operating Margin. Thin 3.5% margins leave little buffer for downturns.

Bear Case : TOL

The primary concerns for TOL are Piotroski F-Score, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

DFH profiles as a value stock while TOL is a declining play — different risk/reward profiles.

DFH carries more volatility with a beta of 1.90 — expect wider price swings.

DFH is growing revenue faster at -7.6% — sustainability is the question.

TOL generates stronger free cash flow (220M), providing more financial flexibility.

Bottom Line

TOL scores higher overall (59/100 vs 42/100). DFH offers better value entry with a 38.9% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Dream Finders Homes Inc

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

Dream Finders Homes, Inc. is a holding company of Dream Finders Holdings LLC engaged in the home construction business in the United States. The company is headquartered in Jacksonville, Florida.

Toll Brothers Inc

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

Toll Brothers, Inc. designs, builds, markets, sells and manages the financing of a variety of detached and attached homes in luxury residential communities in the United States. The company is headquartered in Horsham, Pennsylvania.

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