Barratt Developments (OTCMKTS:BTDPF) vs. Century Communities (NYSE:CCS) Head to Head Review

Century Communities (NYSE:CCS) and Barratt Developments (OTCMKTS:BTDPF) are both consumer cyclical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Dividends

Century Communities pays an annual dividend of $1.04 per share and has a dividend yield of 1.1%. Barratt Developments pays an annual dividend of $0.03 per share and has a dividend yield of 0.5%. Century Communities pays out 11.5% of its earnings in the form of a dividend. Barratt Developments pays out 10.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional & Insider Ownership

99.5% of Century Communities shares are held by institutional investors. Comparatively, 46.4% of Barratt Developments shares are held by institutional investors. 11.9% of Century Communities shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Century Communities and Barratt Developments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Century Communities	7.90%	14.00%	8.10%
Barratt Developments	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and price targets for Century Communities and Barratt Developments, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Century Communities	0	1	1	0	2.50
Barratt Developments	0	0	0	0	N/A

Century Communities presently has a consensus price target of $101.50, indicating a potential upside of 9.97%. Given Century Communities’ higher possible upside, research analysts clearly believe Century Communities is more favorable than Barratt Developments.

Valuation and Earnings

This table compares Century Communities and Barratt Developments’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Century Communities	$4.08 billion	0.72	$259.22 million	$9.01	10.24
Barratt Developments	N/A	N/A	N/A	$0.30	21.46

Century Communities has higher revenue and earnings than Barratt Developments. Century Communities is trading at a lower price-to-earnings ratio than Barratt Developments, indicating that it is currently the more affordable of the two stocks.

Summary

Century Communities beats Barratt Developments on 10 of the 12 factors compared between the two stocks.

About Century Communities

Century Communities, Inc., together with its subsidiaries, engages in the design, development, construction, marketing, and sale of single-family attached and detached homes. It is also involved in the entitlement and development of the underlying land; and provision of mortgage, title, and insurance services to its homebuyers. The company offers homes under the Century Communities and Century Complete brands. It sells homes through its sales representatives, retail studios, and internet, as well as through independent real estate brokers in 18 states in the United States. Century Communities, Inc. was founded in 2002 and is headquartered in Greenwood Village, Colorado.

About Barratt Developments

Barratt Developments 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 incorporated in 1958 and is headquartered in Coalville, the United Kingdom.