WallStSmart

Hovnanian Enterprises Inc (HOV)vsToll Brothers Inc (TOL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Toll Brothers Inc generates 279% more annual revenue ($11.05B vs $2.92B). TOL leads profitability with a 11.7% profit margin vs 1.3%. TOL appears more attractively valued with a PEG of 1.09. TOL earns a higher WallStSmart Score of 61/100 (C+).

HOV

Hold

45

out of 100

Grade: D

Growth: 2.7Profit: 4.0Value: 4.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.92

TOL

Buy

61

out of 100

Grade: C+

Growth: 2.7Profit: 7.0Value: 6.0Quality: 8.0
Piotroski: 3/9Altman Z: 3.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HOV.

TOLSignificantly Overvalued (-53.9%)

Margin of Safety

-53.9%

Fair Value

$95.60

Current Price

$137.42

$41.82 premium

UndervaluedFair: $95.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HOV1 strengths · Avg: 10.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

TOL3 strengths · Avg: 9.3/10
P/E RatioValuation
11.2x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.6010/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Areas to Watch

HOV4 concerns · Avg: 3.8/10
PEG RatioValuation
2.004/10

Expensive relative to growth rate

P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.924/10

Grey zone — moderate risk

Market CapQuality
$672.08M3/10

Smaller company, higher risk/reward

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

Weak financial health signals

Revenue GrowthGrowth
-7.6%2/10

Revenue declined 7.6%

EPS GrowthGrowth
-22.3%2/10

Earnings declined 22.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : HOV

The strongest argument for HOV centers on Price/Book.

Bull Case : TOL

The strongest argument for TOL centers on P/E Ratio, Altman Z-Score, Price/Book. PEG of 1.09 suggests the stock is reasonably priced for its growth.

Bear Case : HOV

The primary concerns for HOV are PEG Ratio, P/E Ratio, Altman Z-Score. Thin 1.3% 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

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

HOV carries more volatility with a beta of 1.87 — expect wider price swings.

HOV is growing revenue faster at -2.7% — sustainability is the question.

TOL generates stronger free cash flow (110M), providing more financial flexibility.

Bottom Line

TOL scores higher overall (61/100 vs 45/100). 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.

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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