WallStSmart

KB Home (KBH)vsToll Brothers Inc (TOL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Toll Brothers Inc generates 95% more annual revenue ($10.76B vs $5.50B). TOL leads profitability with a 11.1% profit margin vs 4.9%. TOL appears more attractively valued with a PEG of 0.95. TOL earns a higher WallStSmart Score of 59/100 (C).

KBH

Hold

46

out of 100

Grade: D+

Growth: 2.0Profit: 5.0Value: 5.0Quality: 7.5
Piotroski: 2/9Altman Z: 3.66

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

Intrinsic value data unavailable for KBH.

TOLSignificantly Overvalued (-42.6%)

Margin of Safety

-42.6%

Fair Value

$95.64

Current Price

$134.92

$39.28 premium

UndervaluedFair: $95.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KBH3 strengths · Avg: 9.3/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.6610/10

Safe zone — low bankruptcy risk

P/E RatioValuation
12.1x8/10

Attractively priced relative to earnings

TOL4 strengths · Avg: 9.5/10
P/E RatioValuation
11.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.6010/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.958/10

Growing faster than its price suggests

Areas to Watch

KBH4 concerns · Avg: 2.8/10
Profit MarginProfitability
4.9%3/10

4.9% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
5.972/10

Expensive relative to growth rate

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 : KBH

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

Bull Case : TOL

The strongest argument for TOL centers on P/E Ratio, Price/Book, Altman Z-Score. PEG of 0.95 suggests the stock is reasonably priced for its growth.

Bear Case : KBH

The primary concerns for KBH are Profit Margin, Operating Margin, Piotroski F-Score. Thin 4.9% 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

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

KBH carries more volatility with a beta of 1.34 — expect wider price swings.

TOL is growing revenue faster at -9.7% — sustainability is the question.

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

Bottom Line

TOL scores higher overall (59/100 vs 46/100). 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.

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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