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

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

Profitability

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

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

Volatility and Risk

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Barratt Redrow and Meritage Homes, as provided by MarketBeat.com.

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

Meritage Homes has a consensus target price of $79.25, indicating a potential upside of 9.24%. Given Meritage Homes’ higher possible upside, analysts plainly believe Meritage Homes is more favorable than Barratt Redrow.

Insider & Institutional Ownership

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

Dividends

Barratt Redrow pays an annual dividend of $0.21 per share and has a dividend yield of 2.5%. Meritage Homes pays an annual dividend of $1.92 per share and has a dividend yield of 2.6%. 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.

Valuation & Earnings

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

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

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

Summary

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

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.

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.