Financial Review: Barratt Redrow (OTCMKTS:BTDPY) and Lennar (NYSE:LEN)

Lennar (NYSE:LEN) and Barratt Redrow (OTCMKTS:BTDPY) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

This table compares Lennar and Barratt Redrow”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lennar	$32.74 billion	0.62	$2.08 billion	$6.39	13.22
Barratt Redrow	$7.22 billion	0.80	$241.22 million	N/A	N/A

Lennar has higher revenue and earnings than Barratt Redrow.

Dividends

Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 2.4%. Barratt Redrow pays an annual dividend of $0.21 per share and has a dividend yield of 2.6%. Lennar pays out 31.3% of its earnings in the form of a dividend. Lennar has raised its dividend for 1 consecutive years.

Volatility and Risk

Lennar has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Barratt Redrow has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares Lennar and Barratt Redrow’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lennar	4.93%	7.08%	4.61%
Barratt Redrow	N/A	N/A	N/A

Insider & Institutional Ownership

81.1% of Lennar shares are owned by institutional investors. Comparatively, 0.1% of Barratt Redrow shares are owned by institutional investors. 10.1% of Lennar 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Lennar and Barratt Redrow, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lennar	10	7	1	0	1.50
Barratt Redrow	0	3	4	1	2.75

Lennar currently has a consensus price target of $92.80, indicating a potential upside of 9.88%. Given Lennar’s higher possible upside, equities research analysts clearly believe Lennar is more favorable than Barratt Redrow.

Summary

Lennar beats Barratt Redrow on 10 of the 16 factors compared between the two stocks.

About Lennar

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company’s homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land; and development, construction, and management of multifamily rental properties. It also offers residential mortgage financing, title, insurance, and closing services for home buyers and others, as well as originates and sells securitization commercial mortgage loans. In addition, the company is involved in the fund investment activity. It primarily serves first-time, move-up, active adult, and luxury homebuyers. Lennar Corporation was founded in 1954 and is based in Miami, Florida.

About Barratt Redrow

Barratt Redrow plc engages in the housebuilding business in the United Kingdom. The company acquires and develops land; plans, designs, and constructs homes, apartments, penthouses, and communities, as well as undertakes mixed-use regeneration schemes; and develops retail, leisure, office, industrial, and mixed-use properties. It is also involved in the commercial development business under the Wilson Bowden Developments brand name. The company offers its homes under the Barratt Homes, David Wilson Homes, and Barratt London brands. The company was formerly known as Barratt Developments plc and changed its name Barratt Redrow plc in October 2024. Barratt Redrow plc was incorporated in 1958 and is headquartered in Coalville, the United Kingdom.