Advanced Drainage Systems (NYSE:WMS – Get Free Report) and Barratt Redrow (OTCMKTS:BTDPY – Get Free Report) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
Profitability
This table compares Advanced Drainage Systems and Barratt Redrow’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Advanced Drainage Systems | 14.82% | 29.57% | 12.23% |
Barratt Redrow | N/A | N/A | N/A |
Valuation & Earnings
This table compares Advanced Drainage Systems and Barratt Redrow”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Advanced Drainage Systems | $2.90 billion | 3.80 | $450.17 million | $5.54 | 25.61 |
Barratt Redrow | $7.22 billion | 1.07 | $241.19 million | N/A | N/A |
Advanced Drainage Systems has higher earnings, but lower revenue than Barratt Redrow.
Insider and Institutional Ownership
89.8% of Advanced Drainage Systems shares are owned by institutional investors. Comparatively, 0.1% of Barratt Redrow shares are owned by institutional investors. 1.6% of Advanced Drainage Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Advanced Drainage Systems and Barratt Redrow, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Advanced Drainage Systems | 0 | 2 | 7 | 0 | 2.78 |
Barratt Redrow | 0 | 0 | 2 | 2 | 3.50 |
Advanced Drainage Systems presently has a consensus target price of $152.56, indicating a potential upside of 7.54%. Given Advanced Drainage Systems’ higher possible upside, analysts clearly believe Advanced Drainage Systems is more favorable than Barratt Redrow.
Dividends
Advanced Drainage Systems pays an annual dividend of $0.72 per share and has a dividend yield of 0.5%. Barratt Redrow pays an annual dividend of $0.23 per share and has a dividend yield of 2.1%. Advanced Drainage Systems pays out 13.0% of its earnings in the form of a dividend. Advanced Drainage Systems has raised its dividend for 1 consecutive years.
Volatility and Risk
Advanced Drainage Systems has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Barratt Redrow has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.
Summary
Advanced Drainage Systems beats Barratt Redrow on 10 of the 16 factors compared between the two stocks.
About Advanced Drainage Systems
Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. The company also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. In addition, it provides PVC hubs, rubber sleeves, and stainless-steel bands. The company offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of distribution centers. Advanced Drainage Systems, Inc. incorporated in 1966 and is headquartered in Hilliard, Ohio.
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.
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