TOL vs SHW vs MAS vs IBP

For growth investors, The Sherwin-Williams Company (SHW) is the stronger pick with 2.

1% revenue growth year-over-year, versus -3. 4% for Masco Corporation (MAS). Toll Brothers, Inc. (TOL) offers the better valuation at 10. 2x trailing P/E (10. 8x forward), making it the more compelling value choice. Analysts rate The Sherwin-Williams Company (SHW) a "Buy" — based on 38 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Toll Brothers, Inc.

(TOL) is the cheapest at 10. 2x versus The Sherwin-Williams Company at 30. 8x. On forward P/E, Toll Brothers, Inc. is actually cheaper at 10. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Toll Brothers, Inc. wins at 0. 34x versus The Sherwin-Williams Company's 3. 90x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Toll Brothers, Inc.

(TOL) delivered a total return of +112. 5%, compared to +14. 4% for The Sherwin-Williams Company (SHW). Over 10 years, the gap is even starker: IBP returned +660. 5% versus MAS's +151. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Sherwin-Williams Company (SHW) is the lower-risk stock at 0.

80β versus Installed Building Products, Inc. 's 1. 31β — meaning IBP is approximately 63% more volatile than SHW relative to the S&P 500. On balance sheet safety, Toll Brothers, Inc. (TOL) carries a lower debt/equity ratio of 35% versus 46% for Masco Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Sherwin-Williams Company (SHW) is pulling ahead at 2.

1% versus -3. 4% for Masco Corporation (MAS). On earnings-per-share growth, the picture is similar: Installed Building Products, Inc. grew EPS 6. 7% year-over-year, compared to -10. 1% for Toll Brothers, Inc.. Over a 3-year CAGR, IBP leads at 3. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Toll Brothers, Inc.

(TOL) is the more profitable company, earning 12. 3% net margin versus 8. 9% for Installed Building Products, Inc. — meaning it keeps 12. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MAS leads at 16. 8% versus 13. 0% for IBP. At the gross margin level — before operating expenses — SHW leads at 48. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Toll Brothers, Inc. (TOL) is the more undervalued stock at a PEG of 0. 34x versus The Sherwin-Williams Company's 3. 90x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Toll Brothers, Inc. (TOL) trades at 10. 8x forward P/E versus 27. 0x for The Sherwin-Williams Company — 16. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SHW: 22. 9% to $389. 43.

All stocks in this comparison pay dividends.

Masco Corporation (MAS) offers the highest yield at 1. 7%, versus 0. 7% for Toll Brothers, Inc. (TOL).

For long-horizon retirement investors, The Sherwin-Williams Company (SHW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

80), 1. 0% yield, +246. 5% 10Y return). Both have compounded well over 10 years (SHW: +246. 5%, MAS: +151. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (TOL (Consumer Cyclical) and SHW (Basic Materials) and MAS (Industrials) and IBP (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: TOL is a mid-cap deep-value stock; SHW is a mid-cap quality compounder stock; MAS is a mid-cap quality compounder stock; IBP is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.