Which Is a Better Investment, PulteGroup, Inc. or Toll Brothers Inc Stock?

By AAII Staff
April 28, 2026
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Sifting through countless of stocks in the Household Durables industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Toll Brothers, Inc., PulteGroup or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Toll Brothers, Inc., PulteGroup and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Toll Brothers, Inc., PulteGroup and Inc.

Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers; and develops, operates, rents apartments and student housing communities. In addition, it provides various interior fit-out options, such as flooring, wall tile, plumbing, cabinets, fixtures, appliances, lighting, and home-automation and security technologies. Further, the company owns and operates architectural, engineering, mortgage, title, land development, insurance, smart home technology, landscaping, lumber distribution, house component assembly, and component manufacturing operations. It serves luxury first-time, move-up, empty-nester, active-adult, and second-home buyers. The company was founded in 1967 and is headquartered in Fort Washington, Pennsylvania.

PulteGroup, Inc., through its subsidiaries, engages in the homebuilding business in the United States. The company is involved in the acquisition and development of land primarily for residential purposes, as well as construction of housing; and sale of single-family detached homes; and attached homes, such as townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods brands. It also engages in the mortgage banking, title, and insurance agency operations. PulteGroup, Inc. was founded in 1950 and is headquartered in Atlanta, Georgia.

Latest Household Durables and Toll Brothers, Inc., PulteGroup, Inc. Stock News

As of April 27, 2026, Toll Brothers, Inc. had a $14.0 billion market capitalization, compared to the Household Durables median of $1.5 million. Toll Brothers, Inc.’s stock is up 6.9% in 2026, down 2.6% in the previous five trading days and up 45.81% in the past year.

Currently, Toll Brothers, Inc.’s price-earnings ratio is 10.5. Toll Brothers, Inc.’s trailing 12-month revenue is $11.3 billion with a 12.3% net profit margin. Year-over-year quarterly sales growth most recently was 15.4%. Analysts expect adjusted earnings to reach $12.762 per share for the current fiscal year. Toll Brothers, Inc. currently has a 0.7% dividend yield.

As of April 27, 2026, PulteGroup, Inc. had a $24.4 billion market cap, putting it in the 88th percentile of all stocks. PulteGroup, Inc.’s stock is up 7.6% in 2026, down 1.9% in the previous five trading days and up 24.73% in the past year.

Currently, PulteGroup, Inc.’s price-earnings ratio is 12.4. PulteGroup, Inc.’s trailing 12-month revenue is $16.8 billion with a 12.1% net profit margin. Year-over-year quarterly sales growth most recently was -12.4%. Analysts expect adjusted earnings to reach $10.052 per share for the current fiscal year. PulteGroup, Inc. currently has a 0.8% dividend yield.

How We Compare Toll Brothers, Inc., PulteGroup and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Toll Brothers, Inc., PulteGroup and Inc.’s stock grades to see how they measure up against one another.

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Toll Brothers, Inc., PulteGroup and Inc. Stock Value Grades

Company Ticker Value
Toll Brothers, Inc. TOL A
PulteGroup, Inc. PHM B

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Toll Brothers, Inc. has a Value Score of 89, which is Deep Value. PulteGroup, Inc. has a Value Score of 80, which is Value.

The Value Stock Winner: Toll Brothers, Inc.

As you can clearly see from the Value Grade breakdown above, Toll Brothers, Inc. is considered to have better value than PulteGroup, Inc.. For investors who focus solely on a company’s valuation, Toll Brothers, Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Toll Brothers, Inc., PulteGroup and Inc.’s Quality Grades

Company Ticker Quality
Toll Brothers, Inc. TOL A
PulteGroup, Inc. PHM B

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Toll Brothers, Inc. has a Quality Score of 87, which is Very Strong. PulteGroup, Inc. has a Quality Score of 79, which is Strong.

The Quality Grade Winner: Toll Brothers, Inc.

As you can clearly see from the Quality Grade breakdown above, Toll Brothers, Inc. has a better overall quality grade than PulteGroup, Inc.. For investors who are looking for companies with higher quality than others in the same industry, Toll Brothers, Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Toll Brothers, Inc., PulteGroup and Inc.’s Momentum Grades

Company Ticker Momentum
Toll Brothers, Inc. TOL B
PulteGroup, Inc. PHM C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Toll Brothers, Inc. has a Momentum Score of 65, which is Strong. PulteGroup, Inc. has a Momentum Score of 54, which is Average.

The Momentum Grade Winner: Toll Brothers, Inc.

As you can clearly see from the Momentum Grade breakdown above, Toll Brothers, Inc. is considered to have stronger momentum compared to PulteGroup, Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Toll Brothers, Inc. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other Toll Brothers, Inc., PulteGroup and Inc. Grades

In addition to Value, Quality and Momentum, A+ Investor also provides grades for Growth and Estimate Revisions.

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Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Toll Brothers, Inc., PulteGroup and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Toll Brothers, Inc., PulteGroup or Inc. Stock?

Overall, Toll Brothers, Inc. stock has a Value Score of 89, Momentum Score of 65 and Quality Score of 87.

PulteGroup, Inc. stock has a Value Score of 80, Momentum Score of 54 and Quality Score of 79.

Comparing Toll Brothers, Inc., PulteGroup and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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