Head to Head Survey: Toll Brothers (NYSE:TOL) & SSGI (OTCMKTS:VICP)

Toll Brothers (NYSE:TOL) and SSGI (OTCMKTS:VICP) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Risk and Volatility

Toll Brothers has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, SSGI has a beta of 4.06, suggesting that its stock price is 306% more volatile than the S&P 500.

Earnings and Valuation

This table compares Toll Brothers and SSGI”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toll Brothers	$10.88 billion	1.19	$1.57 billion	$13.61	9.88
SSGI	N/A	N/A	-$1.18 million	($0.04)	-37.50

Toll Brothers has higher revenue and earnings than SSGI. SSGI is trading at a lower price-to-earnings ratio than Toll Brothers, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Toll Brothers and SSGI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toll Brothers	1	6	7	2	2.63
SSGI	0	0	0	0	0.00

Toll Brothers currently has a consensus target price of $149.43, indicating a potential upside of 11.18%. Given Toll Brothers’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Toll Brothers is more favorable than SSGI.

Profitability

This table compares Toll Brothers and SSGI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toll Brothers	12.64%	17.42%	9.90%
SSGI	N/A	N/A	N/A

Institutional and Insider Ownership

91.8% of Toll Brothers shares are owned by institutional investors. 1.5% of Toll Brothers shares are owned by company insiders. Comparatively, 6.0% of SSGI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Toll Brothers beats SSGI on 12 of the 14 factors compared between the two stocks.

About Toll Brothers

Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers; and develops, operates, and rents apartments. In addition, it provides various interior fit-out options, such as flooring, wall tile, plumbing, cabinets, fixtures, appliances, lighting, and home-automation and security technologies. Further, the company owns and operates architectural, engineering, mortgage, title, land development, insurance, smart home technology, landscaping, lumber distribution, house component assembly, and component manufacturing operations. It serves luxury first-time, move-up, empty-nester, active-adult, and second-home buyers. Toll Brothers, Inc. was founded in 1967 and is headquartered in Fort Washington, Pennsylvania.

About SSGI

Vicapsys Life Sciences, Inc. focuses on the development and commercialization of VICAPSYN, a proprietary product. The company’s product is applied to transplantation therapies and related stem-cell applications in the transplantation field. It also develops VYBRIN, a product based on CXCL12 for prevention of post-surgical adhesions in abdominal surgery, coating of implantable medical devices and other implants to eliminate fibrosis, and wound healing with a focus on diabetic ulcers. The company was formerly known as Phage Therapeutics International, Inc. and changed its name to Vicapsys Life Sciences, Inc. in September 2017. Vicapsys Life Sciences, Inc. was incorporated in 1997 and is based in Suwanee, Georgia.