DRH vs. TOL

Last updated Jun 4, 2026

DRH (DiamondRock Hospitality Company) and TOL (Toll Brothers, Inc.) are both stocks. DRH operates in REIT - Hotel & Motel (Real Estate), while TOL operates in Residential Construction (Consumer Cyclical). Over the past 10 years, DRH returned 5.21%/yr vs 18.10%/yr for TOL. At a 0.44 correlation, their price movements are largely independent.

Performance

DRH vs. TOL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in DiamondRock Hospitality Company (DRH) and Toll Brothers, Inc. (TOL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DRH achieves a 26.89% return, which is significantly higher than TOL's 2.00% return. Over the past 10 years, DRH has underperformed TOL with an annualized return of 5.21%, while TOL has yielded a comparatively higher 18.10% annualized return.

DRH

• 1D: 0.72%
• 1M: 10.07%
• YTD: 26.89%
• 6M: 29.58%
• 1Y: 54.07%
• 3Y*: 14.44%
• 5Y*: 4.43%
• 10Y*: 5.21%

TOL

• 1D: -1.51%
• 1M: 1.75%
• YTD: 2.00%
• 6M: -3.35%
• 1Y: 31.29%
• 3Y*: 25.47%
• 5Y*: 18.05%
• 10Y*: 18.10%

*Multi-year figures are annualized to reflect compound growth (CAGR)

DRH vs. TOL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DRH DiamondRock Hospitality Company	26.89%	3.66%	-0.35%	16.35%	-13.80%	16.48%	-25.54%	29.77%	-16.84%	2.43%
TOL Toll Brothers, Inc.	2.00%	8.28%	23.45%	108.62%	-29.97%	68.43%	11.53%	21.40%	-30.69%	55.85%

Correlation

The correlation between DRH and TOL is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.49
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (10Y) Calculated over the trailing 10-year period	0.40
Correlation (All Time) Calculated using the full available price history since May 27, 2005	0.44

The correlation between DRH and TOL shifts across timeframes, from 0.40 (10 years) to 0.52 (1 year), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap DRH : $2.33B TOL : $13.21B
EPS DRH : $0.50 TOL : $13.19
PE Ratio DRH : 22.44 TOL : 10.42
PEG Ratio DRH : 3.96 TOL : 0.47
PS Ratio DRH : 2.08 TOL : 2.11
PB Ratio DRH : 1.61 TOL : 1.56
Total Revenue (TTM) DRH : $1.12B TOL : $6.37B
Gross Profit (TTM) DRH : $483.67M TOL : $2.71B
EBITDA (TTM) DRH : $279.39M TOL : $1.76B

Return for Risk

DRH vs. TOL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DRH

DRH Risk / Return Rank: 88
DRH Sharpe Ratio Rank: 88
DRH Sortino Ratio Rank: 89
DRH Omega Ratio Rank: 85
DRH Calmar Ratio Rank: 90
DRH Martin Ratio Rank: 89

TOL

TOL Risk / Return Rank: 66
TOL Sharpe Ratio Rank: 69
TOL Sortino Ratio Rank: 68
TOL Omega Ratio Rank: 63
TOL Calmar Ratio Rank: 65
TOL Martin Ratio Rank: 67

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DRH vs. TOL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for DiamondRock Hospitality Company (DRH) and Toll Brothers, Inc. (TOL). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	DRH	TOL	Difference
Sharpe ratio Return per unit of total volatility	2.09	0.93	+1.17
Sortino ratio Return per unit of downside risk	3.13	1.66	+1.47
Omega ratio Gain probability vs. loss probability	1.36	1.19	+0.17
Calmar ratio Return relative to maximum drawdown	4.56	1.25	+3.31
Martin ratio Return relative to average drawdown	11.73	3.21	+8.53
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DRH vs. TOL - Sharpe Ratio Comparison

The current DRH Sharpe Ratio is 2.09, which is higher than the TOL Sharpe Ratio of 0.93. The chart below compares the historical Sharpe Ratios of DRH and TOL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DRH	TOL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.09	0.93	+1.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.13	0.50	-0.37
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.11	0.44	-0.33
Sharpe Ratio (All Time) Calculated using the full available price history	0.08	0.29	-0.21

Drawdowns

DRH vs. TOL - Drawdown Comparison

The maximum DRH drawdown since its inception was -86.50%, which is greater than TOL's maximum drawdown of -76.39%. Use the drawdown chart below to compare losses from any high point for DRH and TOL.

Drawdown Indicators

	DRH	TOL	Difference
Max Drawdown Largest peak-to-trough decline	-86.50%	-76.39%	-10.11%
Max Drawdown (1Y) Largest decline over 1 year	-11.92%	-25.13%	+13.21%
Max Drawdown (3Y) Largest decline over 3 years	-31.90%	-45.97%	+14.07%
Max Drawdown (5Y) Largest decline over 5 years	-37.93%	-45.97%	+8.04%
Max Drawdown (10Y) Largest decline over 10 years	-81.97%	-73.11%	-8.86%
Current Drawdown Current decline from peak	-2.62%	-17.12%	+14.50%
Average Drawdown Average peak-to-trough decline	-32.01%	-32.27%	+0.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.62%	9.78%	-5.16%

Volatility

DRH vs. TOL - Volatility Comparison

The current volatility for DiamondRock Hospitality Company (DRH) is 7.48%, while Toll Brothers, Inc. (TOL) has a volatility of 12.86%. This indicates that DRH experiences smaller price fluctuations and is considered to be less risky than TOL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DRH	TOL	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.48%	12.86%	-5.38%
Volatility (6M) Calculated over the trailing 6-month period	17.99%	24.54%	-6.55%
Volatility (1Y) Calculated over the trailing 1-year period	25.95%	33.97%	-8.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.31%	35.94%	-2.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	46.76%	41.08%	+5.68%

Dividends

DRH vs. TOL - Dividend Comparison

DRH's dividend yield for the trailing twelve months is around 3.29%, more than TOL's 0.73% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DRH DiamondRock Hospitality Company	3.29%	4.02%	3.54%	1.28%	1.10%	0.00%	0.00%	5.64%	4.13%	4.43%	4.34%	5.18%
TOL Toll Brothers, Inc.	0.73%	0.72%	0.71%	0.81%	1.54%	0.86%	1.01%	1.11%	1.25%	0.50%	0.00%	0.00%

Financials

DRH vs. TOL - Profitability Comparison

The chart below illustrates the profitability comparison between DiamondRock Hospitality Company and Toll Brothers, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

DRH - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, DiamondRock Hospitality Company reported a gross profit of 0.00 and revenue of 258.16M. Therefore, the gross margin over that period was 0.0%.

TOL - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Toll Brothers, Inc. reported a gross profit of 568.77M and revenue of -2.15B. Therefore, the gross margin over that period was -26.5%.

DRH - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, DiamondRock Hospitality Company reported an operating income of 0.00 and revenue of 258.16M, resulting in an operating margin of 0.0%.

TOL - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Toll Brothers, Inc. reported an operating income of 346.64M and revenue of -2.15B, resulting in an operating margin of -16.2%.

DRH - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, DiamondRock Hospitality Company reported a net income of 14.46M and revenue of 258.16M, resulting in a net margin of 5.6%.

TOL - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Toll Brothers, Inc. reported a net income of 260.59M and revenue of -2.15B, resulting in a net margin of -12.2%.

Frequently Asked Questions

Can I hold both DRH and TOL in my portfolio?

DRH and TOL have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DRH or TOL?

TOL has higher volatility (12.86%) compared to DRH (7.48%). In terms of maximum drawdown, DRH dropped -86.50% vs TOL's -76.39%.

Which has better risk-adjusted returns?

DRH currently has the higher Sharpe Ratio (2.09 vs 0.93), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.