WallStSmart

KB Home (KBH)vsToll Brothers Inc (TOL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Toll Brothers Inc generates 80% more annual revenue ($11.25B vs $6.24B). TOL leads profitability with a 12.3% profit margin vs 6.9%. TOL appears more attractively valued with a PEG of 0.99. TOL earns a higher WallStSmart Score of 75/100 (B+).

KBH

Buy

51

out of 100

Grade: C-

Growth: 2.0Profit: 5.5Value: 4.7Quality: 7.3
Piotroski: 2/9Altman Z: 3.66

TOL

Strong Buy

75

out of 100

Grade: B+

Growth: 6.7Profit: 7.0Value: 10.0Quality: 8.5
Piotroski: 3/9Altman Z: 3.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KBHSignificantly Overvalued (-81.5%)

Margin of Safety

-81.5%

Fair Value

$35.22

Current Price

$52.12

$16.90 premium

UndervaluedFair: $35.22Overvalued
TOLUndervalued (+74.4%)

Margin of Safety

+74.4%

Fair Value

$629.93

Current Price

$136.91

$493.02 discount

UndervaluedFair: $629.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KBH3 strengths · Avg: 10.0/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.6610/10

Safe zone — low bankruptcy risk

TOL6 strengths · Avg: 8.7/10
P/E RatioValuation
9.8x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.6010/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.998/10

Growing faster than its price suggests

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.4%8/10

15.4% revenue growth

EPS GrowthGrowth
25.1%8/10

Earnings expanding 25.1% YoY

Areas to Watch

KBH4 concerns · Avg: 2.5/10
Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
5.972/10

Expensive relative to growth rate

Revenue GrowthGrowth
-15.3%2/10

Revenue declined 15.3%

TOL2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-11.59M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : KBH

The strongest argument for KBH centers on P/E Ratio, Price/Book, Altman Z-Score.

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 : KBH

The primary concerns for KBH are Profit Margin, Piotroski F-Score, PEG Ratio.

Bear Case : TOL

The primary concerns for TOL are Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

KBH profiles as a value stock while TOL is a growth play — different risk/reward profiles.

TOL carries more volatility with a beta of 1.45 — expect wider price swings.

TOL is growing revenue faster at 15.4% — sustainability is the question.

KBH generates stronger free cash flow (293M), providing more financial flexibility.

Bottom Line

TOL scores higher overall (75/100 vs 51/100) and 15.4% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

KB Home

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

KB Home is a home construction company in the United States. The company is headquartered in Los Angeles, California.

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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