Masco vs Toll Brothers

This page compares Masco and Toll Brothers, outlining each company’s business models, financial performance, and market context to help readers understand how they operate within their sectors. The content remains neutral and accessible, highlighting core similarities and differences in approach, governance, and competitive environment. Educational content, not financial advice.

This page compares Masco and Toll Brothers, outlining each company’s business models, financial performance, and market context to help readers understand how they operate within their sectors. The co...

About The Companies

Masco (MAS)

Masco Corporation is a diversified manufacturer and distributor of home-improvement and building products that serve both new construction and repair-and-remodel markets. The company supplies items used by builders, remodelers and retail channels, and its performance is sensitive to US housing activity, renovation trends and commodity costs. With a market capitalisation around $14.69 billion, Masco combines scale in production and distribution with opportunities to drive margin through product mix, pricing and operational efficiency. Investors should note cyclical exposure—revenues and margins can vary with housing starts, interest rates and consumer spending—and that returns are not guaranteed. The company often focuses on cost control and aftermarket channels to smooth demand swings, but supply-chain or raw material pressures can impact results. This summary is for general educational purposes only and does not constitute personal investment advice; suitability depends on your goals, timeline and risk tolerance.

Toll Brothers (TOL)

Toll Brothers Inc. (TOL) is a US-listed luxury homebuilder specialising in higher-priced single-family homes and active-adult communities across several US regions. With a market cap around $13.3bn, the company builds for a cyclical market where new-home demand, mortgage rates and consumer confidence drive sales. Investors should note Toll’s business relies on land inventory, lot development, and construction margins; backlog levels and the pace of closings are key near-term revenue indicators. Profitability can benefit from price appreciation, option upgrades and cost control, but is exposed to rising interest rates, higher materials and labour costs, and regional housing-market swings. The company’s balance sheet, access to financing and ability to convert backlog to closings matter for resilience in weaker markets. This summary is educational and not financial advice; values can fall as well as rise, and potential investors should assess suitability for their own circumstances and consult a qualified adviser.

Comparison Snapshot

Key Financial Metrics

MAS

Metric

TOL

$13.28B

Market Cap

$13.19B

14.26%

Potential Profit

8.08%

Hold

Analyst Rating

Buy

Which Baskets Do They Appear In?

The Umansky Effect: Riding the Luxury Housing Wave

This curated collection focuses on companies set to benefit from the continued strength in luxury real estate. Based on insights from The Agency CEO Mauricio Umansky, these stocks span premium homebuilders, high-end material suppliers, and luxury furnishing brands positioned to thrive in a resilient high-end housing market.

Published: July 1, 2025

Explore Basket

Which Baskets Do They Appear In?

The Umansky Effect: Riding the Luxury Housing Wave

This curated collection focuses on companies set to benefit from the continued strength in luxury real estate. Based on insights from The Agency CEO Mauricio Umansky, these stocks span premium homebuilders, high-end material suppliers, and luxury furnishing brands positioned to thrive in a resilient high-end housing market.

Published: July 1, 2025

Explore Basket

Investment Analysis

Masco

MAS

Pros

Masco maintains a strong gross margin, averaging around 34% over recent years, reflecting its ability to sell differentiated products rather than commodities.
The company continues to return significant capital to shareholders, with $188 million distributed via dividends and share repurchases in Q3 2025.
Masco's Plumbing Products segment showed positive growth, with net sales up 2% year-on-year in Q3 2025, outperforming its other divisions.

Considerations

Masco's Q3 2025 revenue and earnings missed analyst estimates, with sales down 3% and adjusted EPS declining 10% compared to the prior year.
The Decorative Architectural Products segment faced a sharp decline, with net sales down 12% year-on-year in Q3 2025, dragging overall performance.
Operating profit margin fell by 220 basis points in Q3 2025, reflecting increased cost pressures and weaker profitability across the business.

Toll Brothers

TOL

Pros

Toll Brothers demonstrates strong profitability, with a normalized return on equity of 19.09% and return on assets of 10.74% in recent periods.
The company maintains a healthy current ratio of 3.92, indicating solid short-term liquidity and the ability to cover near-term obligations.
Toll Brothers is a top holding in the iShares U.S. Home Construction ETF, reflecting its prominence and investor confidence in the sector.

Considerations

Toll Brothers has a low quick ratio of 0.27, suggesting limited ability to meet immediate liabilities without relying on inventory sales.
The stock operates in a highly cyclical sector, making it sensitive to changes in interest rates and broader housing market conditions.
Toll Brothers' price-to-earnings ratio is relatively low at 8.22, which may indicate limited near-term growth expectations or sector headwinds.

Discover More Comparisons

Masco vs Hyatt

Masco vs Hyatt: company comparison

Masco vs Magna

Masco vs Magna: A fair compare of two leaders

Masco vs BJ's Wholesale Club

Masco vs BJ's Wholesale Club: a stock comparison

Masco vs Toll Brothers

About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

The Umansky Effect: Riding the Luxury Housing Wave

Which Baskets Do They Appear In?

The Umansky Effect: Riding the Luxury Housing Wave