Balfour Beatty plc (BBY.L) (LON:BBY) and Renew Holdings plc (RNWH.L) (LON:RNWH) are both small-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Balfour Beatty plc (BBY.L) and Renew Holdings plc (RNWH.L), as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Balfour Beatty plc (BBY.L) | 0 | 1 | 4 | 0 | 2.80 |
Renew Holdings plc (RNWH.L) | 0 | 1 | 2 | 0 | 2.67 |
Balfour Beatty plc (BBY.L) currently has a consensus target price of GBX 308.75, indicating a potential upside of 5.74%. Renew Holdings plc (RNWH.L) has a consensus target price of GBX 490, indicating a potential downside of 3.92%. Given Balfour Beatty plc (BBY.L)'s stronger consensus rating and higher probable upside, research analysts plainly believe Balfour Beatty plc (BBY.L) is more favorable than Renew Holdings plc (RNWH.L).
Valuation and Earnings
This table compares Balfour Beatty plc (BBY.L) and Renew Holdings plc (RNWH.L)'s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Balfour Beatty plc (BBY.L) | £7.43 billion | 0.27 | N/A | GBX 15.20 | 19.21 |
Renew Holdings plc (RNWH.L) | £620.37 million | 0.65 | N/A | GBX 26.60 | 19.17 |
Renew Holdings plc (RNWH.L) is trading at a lower price-to-earnings ratio than Balfour Beatty plc (BBY.L), indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Balfour Beatty plc (BBY.L) and Renew Holdings plc (RNWH.L)'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Balfour Beatty plc (BBY.L) | N/A | N/A | N/A |
Renew Holdings plc (RNWH.L) | N/A | N/A | N/A |
Dividends
Balfour Beatty plc (BBY.L) pays an annual dividend of GBX 0.02 per share and has a dividend yield of 0.0%. Renew Holdings plc (RNWH.L) pays an annual dividend of GBX 0.08 per share and has a dividend yield of 0.0%. Balfour Beatty plc (BBY.L) pays out 0.1% of its earnings in the form of a dividend. Renew Holdings plc (RNWH.L) pays out 0.3% 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.
Summary
Balfour Beatty plc (BBY.L) beats Renew Holdings plc (RNWH.L) on 6 of the 9 factors compared between the two stocks.