Barratt Redrow (OTCMKTS:BTDPY) & Meritage Homes (NYSE:MTH) Financial Contrast

Meritage Homes (NYSE:MTH) and Barratt Redrow (OTCMKTS:BTDPY) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Risk and Volatility

Meritage Homes has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Barratt Redrow has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Dividends

Meritage Homes pays an annual dividend of $1.92 per share and has a dividend yield of 2.6%. Barratt Redrow pays an annual dividend of $0.21 per share and has a dividend yield of 2.5%. Meritage Homes pays out 40.2% of its earnings in the form of a dividend. Meritage Homes has increased its dividend for 2 consecutive years. Meritage Homes is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Meritage Homes and Barratt Redrow, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meritage Homes	0	7	5	0	2.42
Barratt Redrow	0	3	4	1	2.75

Meritage Homes presently has a consensus price target of $79.25, suggesting a potential upside of 9.24%. Given Meritage Homes’ higher probable upside, equities analysts clearly believe Meritage Homes is more favorable than Barratt Redrow.

Valuation and Earnings

This table compares Meritage Homes and Barratt Redrow”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meritage Homes	$5.86 billion	0.81	$453.01 million	$4.78	15.18
Barratt Redrow	$7.22 billion	0.83	$241.22 million	N/A	N/A

Meritage Homes has higher earnings, but lower revenue than Barratt Redrow.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Meritage Homes	6.11%	7.13%	4.83%
Barratt Redrow	N/A	N/A	N/A

Insider & Institutional Ownership

98.4% of Meritage Homes shares are held by institutional investors. Comparatively, 0.1% of Barratt Redrow shares are held by institutional investors. 2.5% of Meritage Homes shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Meritage Homes beats Barratt Redrow on 11 of the 16 factors compared between the two stocks.

About Meritage Homes

Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family attached and detached homes in the United States. The company operates through two segments, Homebuilding and Financial Services. It acquires and develops land; and constructs, markets, and sells homes for entry-level and first move-up buyers in Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The company also offers title and escrow, mortgage, insurance, and closing/settlement services to its homebuyers. Meritage Homes Corporation was founded in 1985 and is based in Scottsdale, Arizona.

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.