We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TOL or NVR: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors looking for stocks in the Building Products - Home Builders sector might want to consider either Toll Brothers (TOL - Free Report) or NVR (NVR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Toll Brothers has a Zacks Rank of #2 (Buy), while NVR has a Zacks Rank of #3 (Hold). This means that TOL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TOL currently has a forward P/E ratio of 7.14, while NVR has a forward P/E of 14.85. We also note that TOL has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVR currently has a PEG ratio of 3.49.
Another notable valuation metric for TOL is its P/B ratio of 1.10. 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 5.34.
These metrics, and several others, help TOL earn a Value grade of A, while NVR has been given a Value grade of C.
TOL has seen stronger estimate revision activity and sports more attractive valuation metrics than NVR, so it seems like value investors will conclude that TOL is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TOL or NVR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Building Products - Home Builders sector might want to consider either Toll Brothers (TOL - Free Report) or NVR (NVR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Toll Brothers has a Zacks Rank of #2 (Buy), while NVR has a Zacks Rank of #3 (Hold). This means that TOL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TOL currently has a forward P/E ratio of 7.14, while NVR has a forward P/E of 14.85. We also note that TOL has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVR currently has a PEG ratio of 3.49.
Another notable valuation metric for TOL is its P/B ratio of 1.10. 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 5.34.
These metrics, and several others, help TOL earn a Value grade of A, while NVR has been given a Value grade of C.
TOL has seen stronger estimate revision activity and sports more attractive valuation metrics than NVR, so it seems like value investors will conclude that TOL is the superior option right now.