Hovnanian Enterprises Inc (HOV)vsToll Brothers Inc (TOL)
HOV
Hovnanian Enterprises Inc
$110.24
+0.21%
CONSUMER CYCLICAL · Cap: $617.87M
TOL
Toll Brothers Inc
$136.91
+0.33%
CONSUMER CYCLICAL · Cap: $12.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Toll Brothers Inc generates 283% more annual revenue ($11.25B vs $2.94B). TOL leads profitability with a 12.3% profit margin vs 1.9%. TOL appears more attractively valued with a PEG of 0.99. TOL earns a higher WallStSmart Score of 75/100 (B+).
HOV
Hold47
out of 100
Grade: D+
TOL
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-194.2%
Fair Value
$44.00
Current Price
$110.24
$66.24 premium
Margin of Safety
+74.4%
Fair Value
$629.93
Current Price
$136.91
$493.02 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
15.4% revenue growth
Earnings expanding 25.1% YoY
Areas to Watch
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of 6.9% — below average capital efficiency
1.9% margin — thin
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : HOV
The strongest argument for HOV centers on Price/Book, P/E Ratio.
Bull Case : TOL
The strongest argument for TOL centers on P/E Ratio, Altman Z-Score, PEG Ratio. Revenue growth of 15.4% demonstrates continued momentum. PEG of 0.99 suggests the stock is reasonably priced for its growth.
Bear Case : HOV
The primary concerns for HOV are PEG Ratio, Market Cap, Return on Equity. Thin 1.9% margins leave little buffer for downturns.
Bear Case : TOL
The primary concerns for TOL are Piotroski F-Score, Free Cash Flow.
Key Dynamics to Monitor
HOV profiles as a value stock while TOL is a growth play — different risk/reward profiles.
HOV carries more volatility with a beta of 2.07 — expect wider price swings.
TOL is growing revenue faster at 15.4% — sustainability is the question.
HOV generates stronger free cash flow (132M), providing more financial flexibility.
Bottom Line
TOL scores higher overall (75/100 vs 47/100) and 15.4% revenue growth. Both earn "Strong 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.
Hovnanian Enterprises Inc
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
Hovnanian Enterprises, Inc. is dedicated to the design, construction, marketing and sales of residential homes in the United States. The company is headquartered in Matawan, New Jersey.
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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