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TOL vs. NVR: Which Stock Is the Better Value Option?
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Investors with an interest in Building Products - Home Builders stocks have likely encountered both Toll Brothers (TOL - Free Report) and NVR (NVR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Toll Brothers is sporting a Zacks Rank of #2 (Buy), while NVR has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TOL likely has seen a stronger improvement to its earnings outlook than NVR has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TOL currently has a forward P/E ratio of 6.97, while NVR has a forward P/E of 14.13. We also note that TOL has a PEG ratio of 0.63. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NVR currently has a PEG ratio of 3.32.
Another notable valuation metric for TOL is its P/B ratio of 1.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NVR has a P/B of 5.08.
Based on these metrics and many more, TOL holds a Value grade of A, while NVR has a Value grade of C.
TOL is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TOL is likely the superior value option right now.
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TOL vs. NVR: Which Stock Is the Better Value Option?
Investors with an interest in Building Products - Home Builders stocks have likely encountered both Toll Brothers (TOL - Free Report) and NVR (NVR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Toll Brothers is sporting a Zacks Rank of #2 (Buy), while NVR has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TOL likely has seen a stronger improvement to its earnings outlook than NVR has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TOL currently has a forward P/E ratio of 6.97, while NVR has a forward P/E of 14.13. We also note that TOL has a PEG ratio of 0.63. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NVR currently has a PEG ratio of 3.32.
Another notable valuation metric for TOL is its P/B ratio of 1.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NVR has a P/B of 5.08.
Based on these metrics and many more, TOL holds a Value grade of A, while NVR has a Value grade of C.
TOL is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TOL is likely the superior value option right now.