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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsCompare homebuilder stocks by reading backlog, margins, debt and land exposure together—not by ranking one headline number. Backlog can indicate demand awaiting closing, but it is not guaranteed revenue; margins depend on costs and accounting choices; debt needs to be viewed alongside liquidity and interest; and “controlled” lots are not the same as owned lots. Use dated filings, issuer definitions and matched reporting periods to build a comparison rather than treating unlike figures as a league table.
How do you compare homebuilder stocks?
Start with each builder’s latest annual or quarterly filing and earnings release. Record the reporting date beside every figure, because homebuilders have different fiscal calendars. Use common periods where possible, and account for differences in geography, product tier and average selling price before interpreting a gap as stronger or weaker performance.
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A useful peer worksheet has four sections: backlog and sales activity; reported and adjusted margins; debt, liquidity and interest; and owned versus contract-controlled land. Keep the company’s own definitions and reconciliations with the numbers. The figures below illustrate what to capture, but their reporting dates differ and they are not a contemporaneous ranking.
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A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11| Measure | What to record | How to interpret it |
|---|---|---|
| Backlog | Units, value, average backlog price, date, cancellations, orders and deliveries | Visibility into contracted demand awaiting closing; conversion and cancellations matter as much as scale. |
| Margins | Reported gross margin, any adjusted margin and its exclusions, plus cost and selling trends | Compare the same measure over matched periods; adjusted figures may exclude different items. |
| Debt and liquidity | Debt and maturities, cash, available credit, interest costs and capitalized interest | Leverage alone does not show ability to fund operations or the effect of financing costs. |
| Land | Owned and controlled lots, purchase commitments, deposits, timing and option terms | Lot control can involve less immediate ownership capital but still create contractual and execution risks. |
What does backlog mean for a homebuilder?
Backlog is homes under contract that have not yet closed, measured at a stated reporting date. It is a dated indicator of contracted demand—not a promise that every home will close, or that a builder will earn a particular profit on it. Compare backlog units and value with new orders, deliveries, cancellations and community count when reported. Consider average selling price and regional mix as well: a larger dollar backlog can reflect higher-priced homes rather than more homes or stronger conversion.
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For example, 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 as of July 31, 2026 (Toll Brothers, fiscal third-quarter 2026 results). These figures have different dates and product mixes. Toll Brothers reported an average delivered price of $996,400 for that quarter, illustrating why backlog dollars alone do not make a meaningful size comparison.
How should you compare homebuilder margins?
Keep the reported margin and any adjusted figure side by side. Gross margin can move with selling incentives, construction costs, land basis, product mix, inventory impairments and the treatment of interest. An adjusted measure is useful only when its exclusions are clear; adjustments from different issuers are not automatically comparable.
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Toll Brothers reported a 23.9% home-sales gross margin for the quarter ended July 31, 2026, and an adjusted 25.6% excluding interest and inventory write-downs (Toll Brothers, fiscal third-quarter 2026 results). Taylor Morrison reported a 22.5% full-year 2025 home-closings gross margin and an adjusted 23.0% after inventory impairment and certain warranty charges (Taylor Morrison, 2025 results). These are different periods and adjustment definitions, so the percentages should not be read as a direct contest.
For a meaningful trend, compare the same company’s reported measure over multiple periods and check the reconciliation for adjusted figures. Track incentives, average selling prices, cost per home and selling, general and administrative expenses (SG&A), including SG&A as a share of revenue when available. This helps distinguish a change in underlying economics from a shift in mix or accounting treatment.
How do you assess homebuilder debt and liquidity?
Use each company’s latest filing to capture total debt, maturities, cash, available credit, interest rates or expense, and any issuer-defined net debt or debt-to-capital ratio. Preserve the company’s definition when using a ratio; if calculating one yourself, apply the same formula and reporting date to every peer. A single debt amount cannot establish relative risk without liquidity, timing of maturities and financing costs.
Also check how much interest is capitalized into inventory and when it reaches cost of sales. Capitalized interest may be recognized in homebuilding cost of sales as homes close, affecting reported margins and making companies with different financing or accounting profiles harder to compare.
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 months ended June 30, 2026. The company attributed an increase in interest incurred partly 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 for a homebuilder?
Neither label alone establishes risk. Owned land ties up capital and leaves the builder exposed to development costs and market changes. Optioned or otherwise contract-controlled lots may reduce the need to own land immediately, but can still involve deposits, remaining purchase obligations, development timing, feasibility decisions and market risk. Read the contract disclosures rather than assuming that all controlled lots can be abandoned without cost.
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Record total lots, owned share, lots under options or similar contracts, remaining purchase price, deposits at risk, payment timing, development obligations, joint-venture interests and any stated ability to abandon a contract. The terms and issuer definitions matter more than the word “controlled.”
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 as of May 31, 2026, with 38% controlled under land-option or similar contracts (KB Home, 2026 Form 10-Q). KB Home said those agreements generally do not require specific performance and that it typically may decline to exercise an option and forfeit deposits without further penalty or seller obligation. The specific contract governs, and that description should not be generalized to other builders or every agreement.
What can make two builders look different on paper?
- Reporting dates: Label each figure with its fiscal period end; quarter-end backlog from one builder may not be contemporaneous with another’s.
- Product tier and price: Luxury and entry-level mixes affect average selling prices and backlog dollars.
- Geography: Regional demand, land costs and construction conditions can shape orders and margins.
- Definitions: Issuers may define backlog, cancellations, adjusted margin and controlled lots differently. Use their stated definitions and reconciliations.
- Accounting and financing: Interest capitalization and inventory write-downs can affect reported cost and margins.
For deeper general guidance on interpreting GAAP and non-GAAP financial statements, Wiley lists Financial Statement Analysis: A Practitioner’s Guide, Fifth Edition, by Martin Fridson and Fernando Alvarez, first published April 19, 2022. It is a general financial-analysis reference, not a homebuilder-specific guide (Wiley book listing).
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