Toll Brothers Inc (TOL), Lennar Corporation (LEN), PulteGroup, Inc. (PHM) : No Competition And Huge Growth? Sign Me Up!

Speaking of the company’s backlog, Toll Brothers Inc (NYSE:TOL) has the most impressive backlog at their price point. While Lennar and PulteGroup, Inc. (NYSE:PHM) have 82% and 65% growth in units, keep in mind this is at a price less than half of Toll. By comparison, KB Home’s 25% increase in units looks a bit weak. Toll on the other hand reported a 57% increase in units in their backlog.

What is almost more important is, Toll’s cancellation rate has stayed far below the industry average. KB Home (NYSE:KBH) has the biggest problem with cancellations with a 32% rate in the current quarter. Lennar Corporation (NYSE:LEN) reported a 15% cancellation rate, PulteGroup, Inc. (NYSE:PHM) didn’t report a cancellation rate, and Toll came in at just 6.2%.

Far From Done
As you can see, Toll Brothers Inc (NYSE:TOL) is outperforming their peers in many respects. While the stock appears expensive at 46 times 2013 projected earnings, keep in mind Toll also has the highest projected growth rate at over 39% in the next few years.

By comparison, Lennar Corporation (NYSE:LEN) and PulteGroup, Inc. (NYSE:PHM) should do well based on their strong backlogs. On the other hand, KB Home (NYSE:KBH) appears far overvalued at over 20 times even 2014 projections. The company’s slower growing backlog and huge cancellation rate, are problems investors shouldn’t ignore.

Toll Brothers Inc (NYSE:TOL) has been the class of the high-end housing industry for a while. The company’s results should be strong in the future, and with less competition, this run is just getting started.

Chad Henage has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.