Lennar vs Toll Brothers: Which Stock Could Rally?
Lennar fell -10% so far this year. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Toll Brothers gives you more. Toll Brothers (TOL) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Lennar (LEN) stock, suggesting you may be better off investing in TOL
- TOL’s quarterly revenue growth was 15.4%, vs. LEN’s -5.8%.
- In addition, its Last 12 Months revenue growth came in at 4.6%, ahead of LEN’s -3.5%.
- TOL leads on profitability over both periods – LTM margin of 15.3% and 3-year average of 17.1%.
These differences become even clearer when you look at the financials side by side. The table highlights how LEN’s fundamentals stack up against those of TOL on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| LEN | TOL | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 8.9 | 8.0 | TOL |
| Revenue Growth | |||
| Last Quarter | -5.8% | 15.4% | TOL |
| Last 12 Months | -3.5% | 4.6% | TOL |
| Last 3 Year Average | 0.6% | 3.2% | TOL |
| Operating Margins | |||
| Last 12 Months | 8.0% | 15.3% | TOL |
| Last 3 Year Average | 12.5% | 17.1% | TOL |
| Momentum | |||
| Last 3 Year Return | 3.6% | 156.5% | TOL |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: LEN Revenue Comparison | TOL Revenue Comparison
See more margin details: LEN Operating Income Comparison | TOL Operating Income Comparison
See detailed fundamentals on Buy or Sell TOL Stock and Buy or Sell LEN Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| LEN Return | 54% | -21% | 67% | -7% | -23% | -4% | 40% | ||
| TOL Return | 68% | -30% | 109% | 23% | 8% | 8% | 255% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -1% | 81% | ||
| Monthly Win Rates [3] | |||||||||
| LEN Win Rate | 75% | 42% | 58% | 67% | 33% | 67% | 57% | ||
| TOL Win Rate | 83% | 42% | 83% | 58% | 50% | 67% | 64% | <=== | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 33% | 60% | ||
| Max Drawdowns [4] | |||||||||
| LEN Max Drawdown | -4% | -44% | 0% | -7% | -24% | -4% | -14% | ||
| TOL Max Drawdown | -3% | -43% | 0% | -6% | -28% | -0% | -13% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -2% | -8% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 3/11/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read TOL Dip Buyer Analyses and LEN Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about LEN or TOL? Consider portfolio approach.
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