Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsCompare homebuilder stocks by reading backlog, margins, debt and land commitments together—not by ranking one headline figure. Use each company’s latest filings, record the reporting date and definitions, then normalize for fiscal period, geography and product mix. Backlog can indicate contracted demand, but it is not guaranteed revenue; adjusted margins and controlled lots also mean different things from company to company.
How do you compare homebuilder stocks?
Build a filing-based comparison for the same period wherever possible. For every metric, capture the company’s definition, the date, and whether the figure is reported or adjusted. If fiscal calendars do not line up, show the dates prominently and do not present the figures as contemporaneous rankings.
- Set the peer context. Record primary regions, product and price tier, fiscal year-end and community count when disclosed. Differences in geography, average selling price and customer mix can make similar metrics behave differently.
- Track operating flow. Record backlog units and value alongside new orders, deliveries and cancellations. Capture average selling price and cancellation-rate definition, not just totals.
- Compare profitability. Keep reported gross margin next to any adjusted measure, with its exclusions. Add multi-period trends in incentives, selling prices, cost per home and SG&A as a share of revenue.
- Assess financing. From the latest filing, capture debt and maturities, cash, available credit, interest costs and capitalized interest. Use a leverage ratio only when its calculation is defined consistently across peers.
- Map land obligations. Separate owned lots from optioned or otherwise controlled lots; record purchase commitments, deposits, timing, development obligations, joint ventures and abandonment terms.
A useful working table can include columns for builder, period end, regions and price tier; backlog units, value and average price; cancellations, orders and deliveries; reported and adjusted gross margin; SG&A; debt, cash and available liquidity; interest expense and capitalization; owned and controlled lots; and remaining purchase commitments and option deposits. Use “not stated” where a filing does not supply a comparable value, and identify the source in your working notes.
What does backlog mean for a homebuilder?
Backlog is homes under contract that have not yet closed as of a stated date. It is a snapshot of contracted demand and potential future closings, not a guarantee: contracts may cancel, and backlog converts to revenue only when homes close. Its value does not establish the profit on those homes.
The Tool Desk
Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →#1 Best Overall
Read units, dollar value and implied average price together, then compare backlog with orders, deliveries and cancellations. Community count and regional mix, when disclosed, help explain whether a large backlog reflects broad activity or a narrower footprint.
Company examples illustrate why dates and mix matter. Lennar reported 16,818 homes in backlog worth $6.606 billion, at an average sales price of $393,000, as of May 31, 2026 (Lennar second-quarter 2026 results). Toll Brothers reported 5,312 homes and $6.24 billion of backlog at July 31, 2026 (Toll Brothers fiscal 2026 third-quarter results). These figures have different dates, and Toll Brothers’ luxury mix is apparent in its reported average delivered price of $996,400 for the quarter. They do not support a simple size ranking.
Rank #2
- Comes with secure packaging
- Easy to read text
- It can be a gift option
How should you compare homebuilder margins?
Start with the reported gross margin for home closings or home sales and the exact period. Gross margin can move with selling incentives, construction costs, land basis, product mix, inventory impairments and how interest is treated. Compare trends over several periods and look at selling prices, cost per home and SG&A alongside the margin.
Keep adjusted metrics separate. Companies may exclude different items, so an adjusted percentage is not a standardized peer measure; read the issuer’s reconciliation and preserve the reported figure.
Recommended Free Tools
For the quarter ended July 31, 2026, Toll Brothers reported a 23.9% home-sales gross margin and an adjusted 25.6% excluding interest and inventory write-downs (Toll Brothers fiscal 2026 third-quarter results). Taylor Morrison reported full-year 2025 home closings gross margin of 22.5%, adjusted to 23.0% for inventory impairment and certain warranty charges (Taylor Morrison 2025 results). The periods and adjustment definitions differ; comparing the adjusted figures as if they were identical would obscure those differences.
What debt and interest measures matter?
Debt alone does not show how exposed a builder is to financing costs or whether it can meet obligations. Use the latest filing to capture total debt and maturities, cash, available credit, interest rates or expense, and any net-debt or debt-to-capital measure the company defines. If calculating ratios yourself, apply the same numerator, denominator and date to each peer.
Rank #4
Also note interest capitalized into inventory. Capitalized interest can enter cost of sales when a home closes, complicating direct comparisons of reported margins and current-period interest expense. D.R. Horton said interest charged to cost of sales was 0.5% of homebuilding cost of sales, excluding inventory and land-option charges, in both the three- and nine-month periods ended June 30, 2026. The company attributed an increase in interest incurred in part to higher average debt and borrowing rates (D.R. Horton 2026 Form 10-Q). This is a company-specific disclosure, not a peer benchmark.
Is owned land or optioned land riskier?
Neither label alone captures the risk. Owned lots tie up capital directly and expose the builder to holding and development costs. Lots under options or similar contracts can reduce the capital committed up front, but may carry deposits, purchase obligations, timing risk, development requirements and uncertainty about feasibility or market demand. “Controlled” lots should not be treated as risk-free supply.
Best Value
Separate lot counts by ownership and contractual control. For controlled lots, inspect remaining purchase price, deposit exposure, payment schedule, development obligations, joint-venture interests and whether the builder can abandon the contract—and at what cost. Contract terms govern; general descriptions do not replace the specific agreement.
D.R. Horton reported $26.7 billion of remaining purchase price for lots controlled through land and lot purchase contracts at December 31, 2025 (D.R. Horton 2026 Form 10-Q). KB Home reported 59,106 lots owned or controlled at May 31, 2026, with 38% controlled under land-option or similar contracts (KB Home Form 10-Q for the six months ended May 31, 2026). KB Home said such agreements generally do not require specific performance and that it typically may decline to exercise and forfeit deposits without further penalty or seller obligation. That description is company-specific; the terms of each contract matter.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How do you turn the figures into a fair comparison?
- Align periods. Compare the same quarter or trailing period where possible. If dates differ, label each one and avoid league-table conclusions.
- Respect definitions. Confirm what counts as backlog, cancellations, gross margin, adjusted exclusions, debt and controlled lots.
- Explain mix. Note geography, price tier and product type before interpreting average selling price or margin differences.
- Look for conversion and commitments. Assess backlog alongside orders, deliveries and cancellations; assess lot counts alongside purchase commitments and deposits.
- Do not infer a winner from one metric. A larger backlog, higher adjusted margin or greater controlled-lot share is not, by itself, evidence of stronger overall economics.
The cited examples span different reporting dates and company definitions, so they illustrate how to read disclosures rather than establish a current peer ranking. A cross-company debt-and-liquidity comparison also requires pulling the same fields from each company’s latest filing.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
