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KBH vs TOL
Which Stock Would AI Choose? KB Home (KBH) vs. Toll Brothers (TOL) Stock Comparison
Key Takeaways
- KB Home (KBH) focuses on entry-level and first-time move-up buyers, while Toll Brothers (TOL) targets the luxury segment, leading to differing sensitivities to mortgage rates and economic conditions.
- Recent quarterly results showed KB Home (KBH) reporting revenue of $1.11 billion with an EPS of $0.43, while Toll Brothers (TOL) prepares for its fiscal Q3 earnings with expected EPS of $2.90.
- Toll Brothers (TOL) maintains higher net margins (11.66%) and return on equity (15.47%) compared to KB Home (KBH) (4.94% net margin), highlighting stronger profitability metrics in recent periods.
- Stock prices as of mid-August 2026 stood at approximately $56 for KB Home (KBH) and $148 for Toll Brothers (TOL), with both exhibiting volatility amid broader housing sector dynamics.
- Market positioning contrasts reveal KB Home (KBH) with greater exposure to affordable housing demand fluctuations and Toll Brothers (TOL) benefiting from luxury buyer resilience and new community expansions.
- Relative performance in recent weeks reflects sector-wide influences from interest rates, with Toll Brothers (TOL) showing more stable longer-term returns in some comparisons.
Introduction
Homebuilder stocks such as KBH and TOL offer investors exposure to the U.S. housing market, where factors like mortgage rates, buyer sentiment, and economic conditions play significant roles. This comparison examines KB Home (KBH) and Toll Brothers (TOL) to highlight differences in business models, recent performance, and market positioning. Professional traders and investors seeking to understand relative strengths in the consumer durables sector may find this analysis relevant for portfolio allocation decisions or sector rotation strategies. The focus remains on verifiable data from recent market activity to support informed evaluations.
KB Home Overview and Recent Performance
KB Home (KBH) operates as a homebuilder primarily serving entry-level and first move-up buyers across various U.S. markets. In recent market activity, the company reported second-quarter 2026 results with revenue of $1.11 billion, down year-over-year, and diluted earnings per share of $0.43. The stock traded near $56 in mid-August 2026, with market capitalization around $3.4 billion. Recent weeks showed price fluctuations influenced by broader housing sector sentiment and interest rate expectations. Analyst consensus maintained a Hold rating, reflecting balanced views on operational execution amid affordability challenges for its target demographic.
Toll Brothers Overview and Recent Performance
Toll Brothers (TOL) specializes in luxury homebuilding with communities in over 60 markets nationwide. As of mid-August 2026, shares traded near $148 with a market capitalization of approximately $13.9 billion. The company is scheduled to report fiscal third-quarter earnings on August 18, with analyst projections indicating EPS of $2.90 and revenue of $2.6 billion. Recent activity includes announcements of new waterfront luxury communities, supporting its premium positioning. In recent weeks, performance reflected luxury segment dynamics, with year-to-date returns around 10% amid ongoing monitoring of buyer demand and rate environments.
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Head-to-Head Comparison
KB Home (KBH) and Toll Brothers (TOL) differ markedly in target markets, with the former emphasizing affordability-sensitive segments and the latter focusing on higher-end buyers less impacted by borrowing costs. Growth drivers for KB Home (KBH) include volume in entry-level homes, while Toll Brothers (TOL) benefits from premium pricing and community development. Recent momentum shows both navigating housing headwinds, though Toll Brothers (TOL) demonstrates superior profitability metrics including higher net margins and return on equity. Risk factors for KB Home (KBH) involve greater exposure to economic downturns affecting first-time buyers, whereas Toll Brothers (TOL) faces luxury demand variability. Sector exposure remains aligned in residential construction, yet market sentiment often favors established luxury operators during periods of selective buyer strength.
Tickeron AI Verdict
Based on observable factors including trend consistency, stability indicators, and relative positioning in recent market activity, Tickeron’s AI models would likely assign a probabilistic edge to Toll Brothers (TOL) due to its stronger profitability profile, luxury segment resilience, and upcoming earnings visibility. KB Home (KBH) presents trade-offs related to its entry-level focus amid affordability pressures. This assessment draws from verifiable performance data and sector contrasts rather than forward projections.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is KBH is a Hold and TOL is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
KBH’s FA Score shows that 2 FA rating(s) are green whileTOL’s FA Score has 1 green FA rating(s).
- KBH’s FA Score: 2 green, 3 red.
- TOL’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
KBH’s TA Score shows that 3 TA indicator(s) are bullish while TOL’s TA Score has 3 bullish TA indicator(s).
- KBH’s TA Score: 3 bullish, 6 bearish.
- TOL’s TA Score: 3 bullish, 6 bearish.
Price Growth
KBH (@Homebuilding) experienced а -1.23% price change this week, while TOL (@Homebuilding) price change was -0.80% for the same time period.
The average weekly price growth across all stocks in the @Homebuilding industry was -1.63%. For the same industry, the average monthly price growth was +0.45%, and the average quarterly price growth was -6.14%.
Reported Earning Dates
KBH is expected to report earnings on Sep 23, 2026.
TOL is expected to report earnings on Aug 25, 2026.
Industries' Descriptions
@Homebuilding (-1.63% weekly)Homebuilding includes companies residential home construction companies, renovators and repair firms. The companies may be building single-family or multifamily homes, condominiums or mobile homes. Over the five years to 2019, the Home Builders industry is estimated to have grown at an annualized rate of 2.5% to reach $89.4 billion, (including expected growth of 2.6% in 2019), according to a study by IbisWorld. After having suffered one of its worst crises a decade ago during the last macroeconomic recession–which had much of its origins in U.S. real estate – the homebuilding industry has been recovering steadily so far. Higher disposable incomes and improving economic activity have bolstered consumers’ purchases of homes. While revenue of the Home Builders industry remains well below its prerecession high, demand growth estimates show promise.
| KBH | TOL | KBH / TOL | |
| Capitalization | 3.4B | 13.7B | 25% |
| EBITDA | 368M | 1.7B | 22% |
| Gain YTD | -0.521 | 9.374 | -6% |
| P/E Ratio | 13.47 | 11.85 | 114% |
| Revenue | 5.5B | 11B | 50% |
| Total Cash | 231M | 1.11B | 21% |
| Total Debt | 2B | 2.92B | 68% |
KBH | TOL | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 71 | 75 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 10 Undervalued | 64 Fair valued | |
PROFIT vs RISK RATING 1..100 | 74 | 41 | |
SMR RATING 1..100 | 79 | 54 | |
PRICE GROWTH RATING 1..100 | 58 | 53 | |
P/E GROWTH RATING 1..100 | 11 | 27 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
KBH's Valuation (10) in the Homebuilding industry is somewhat better than the same rating for TOL (64). This means that KBH’s stock grew somewhat faster than TOL’s over the last 12 months.
TOL's Profit vs Risk Rating (41) in the Homebuilding industry is somewhat better than the same rating for KBH (74). This means that TOL’s stock grew somewhat faster than KBH’s over the last 12 months.
TOL's SMR Rating (54) in the Homebuilding industry is in the same range as KBH (79). This means that TOL’s stock grew similarly to KBH’s over the last 12 months.
TOL's Price Growth Rating (53) in the Homebuilding industry is in the same range as KBH (58). This means that TOL’s stock grew similarly to KBH’s over the last 12 months.
KBH's P/E Growth Rating (11) in the Homebuilding industry is in the same range as TOL (27). This means that KBH’s stock grew similarly to TOL’s over the last 12 months.
| KBH | TOL | |
|---|---|---|
| RSI ODDS (%) | N/A | N/A |
| Stochastic ODDS (%) | 3 days ago 70% | 3 days ago 73% |
| Momentum ODDS (%) | 3 days ago 66% | 3 days ago 59% |
| MACD ODDS (%) | 3 days ago 65% | 3 days ago 61% |
| TrendWeek ODDS (%) | 3 days ago 69% | 3 days ago 63% |
| TrendMonth ODDS (%) | 3 days ago 70% | 3 days ago 61% |
| Advances ODDS (%) | 19 days ago 69% | 19 days ago 71% |
| Declines ODDS (%) | 6 days ago 66% | 6 days ago 59% |
| BollingerBands ODDS (%) | 3 days ago 60% | 3 days ago 67% |
| Aroon ODDS (%) | N/A | 3 days ago 63% |
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| 1 Day | |||
|---|---|---|---|
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| FITE | 112.10 | 0.83 | +0.75% |
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| Invesco NASDAQ Internet ETF | |||
| YLDW | 25.80 | 0.03 | +0.12% |
| Westwood Enhanced Income Opportunity ETF | |||
| IBDU | 23.05 | -0.01 | -0.04% |
| iShares iBonds Dec 2029 Term Corp ETF | |||
| QBTZ | 2.92 | -0.59 | -16.81% |
| Defiance Daily Target 2X Short QBTS ETF | |||
KBH and
Correlation & Price change
A.I.dvisor indicates that over the last year, KBH has been closely correlated with MTH. These tickers have moved in lockstep 88% of the time. This A.I.-generated data suggests there is a high statistical probability that if KBH jumps, then MTH could also see price increases.
TOL and
Correlation & Price change
A.I.dvisor indicates that over the last year, TOL has been closely correlated with PHM. These tickers have moved in lockstep 89% of the time. This A.I.-generated data suggests there is a high statistical probability that if TOL jumps, then PHM could also see price increases.