Reviewing Lennar (NYSE:LEN) and Barratt Redrow (OTCMKTS:BTDPY)

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

Risk & Volatility

Barratt Redrow has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Lennar has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Dividends

Barratt Redrow pays an annual dividend of $0.21 per share and has a dividend yield of 2.5%. Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 2.3%. Lennar pays out 31.3% of its earnings in the form of a dividend. Lennar has raised its dividend for 1 consecutive years.

Analyst Ratings

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

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

Lennar has a consensus target price of $92.13, indicating a potential upside of 7.66%. Given Lennar’s higher possible upside, analysts clearly believe Lennar is more favorable than Barratt Redrow.

Institutional & Insider Ownership

0.1% of Barratt Redrow shares are held by institutional investors. Comparatively, 81.1% of Lennar shares are held by institutional investors. 10.1% of Lennar shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Barratt Redrow and Lennar’s 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
Lennar	4.93%	7.08%	4.61%

Valuation & Earnings

This table compares Barratt Redrow and Lennar”s top-line revenue, earnings per share (EPS) 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
Lennar	$34.19 billion	0.60	$2.08 billion	$6.39	13.39

Lennar has higher revenue and earnings than Barratt Redrow.

Summary

Lennar beats Barratt Redrow on 10 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 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.