Toll Brothers vs. KB Homes: Building for Life

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Difference between Toll Brothers and KB Homes

Two of the biggest names in the house manufacturing industry are Toll Brothers and KB Homes. Both are American firms that are recognized authorities in the field and many people routinely turn to one of them when it comes time to buy a home. As similar as the two companies are however, they have a number of differences worth looking into and that is precisely what we do in this article.

At A Glance

Toll Brothers is a luxury homes builder based in Horsham, Pennsylvania. KB Home on the other hand is a home building company based in Los Angeles that started out as the Kaufman & Broad Company in 1957. KB Homes was the first housing development company to go public on the New York Stock Exchange. KB Homes also has the distinction of being a Fortune 500 company.

Market Share And Performance

The two companies have closely mirrored each other in terms of performance in the years prior to 2005, upon which both experienced a dip in the prices of their respective stocks. While KB Homes has managed to recover from this decline somewhat, Toll Brothers hasn't been quite so fortunate. Toll Brothers and KB Homes experienced declines in stock prices of 1.2% to $17.84 and 1% to $14.21 respectively.

Key Events/Accomplishments 

By 1979, Toll Brothers had managed to achieve yearly revenues of nearly $50 million. The company expanded its operations to New Jersey in 1982 and by 1986 it had gone public with a net result of $40 million. KB Homes for its part was the first major home builder to implement the National Housing Quality certification program all over the country. The company also entered into a partnership with Martha Stewart in order to build homes that were based on Stewart's own home designs. The company also works with Disney in producing bedrooms with familiar motifs from the entertainment giant. In spite of legal issues that dogged the company, KB Homes managed to bag Fortune Magazine’s "Most Admired Home Builder" awards in 2006, 2008 and 2009. More recently, the company embarked on its “Open Series" line of homes that emphasized affordability and energy efficiency.

Summary

Toll Brothers

  • Is a luxury homes builder based in Horsham, Pennsylvania
  • Began a slow decline in 2005, after which stocks fell 1.2% to $17.84 per share
  • Expanded its operations to New Jersey in 1982
  • Went public in 1986 to the tune of $40 million

KB Homes

  • Is a home building company based in Los Angeles, California
  • Started out as the Kaufman & Broad Company in 1957
  • Was the first company to be publicly traded on the New York City Stock Exchange
  • Is a Fortune 500 company
  • Declined in late 2005, although it has since recovered
  • Fell 1% to $14.21 per share in 2005
  • Is the first major home builder to implement the National Housing Quality certification program
  • Partnered with Martha Stewart in building homes based on her own home designs
  • Produces bedrooms featuring Disney motifs

Which home builder is more reputable and trustworthy?
  • Toll Brothers
  • KB Homes
 
 

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