Breedon Group (LON:BREE) and Michelmersh Brick (LON:MBH) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Profitability
This table compares Breedon Group and Michelmersh Brick's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Breedon Group | N/A | N/A | N/A |
| Michelmersh Brick | N/A | N/A | N/A |
Valuation and Earnings
This table compares Breedon Group and Michelmersh Brick's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Breedon Group | £928.70 million | 1.74 | N/A | GBX 2 | 48.00 |
| Michelmersh Brick | £52.04 million | 2.86 | N/A | GBX 4.90 | 32.32 |
Michelmersh Brick is trading at a lower price-to-earnings ratio than Breedon Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Breedon Group and Michelmersh Brick, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Breedon Group | 0 | 1 | 3 | 0 | 2.75 |
| Michelmersh Brick | 0 | 0 | 1 | 0 | 3.00 |
Breedon Group presently has a consensus price target of GBX 95.50, indicating a potential downside of 0.52%. Michelmersh Brick has a consensus price target of GBX 146, indicating a potential downside of 7.80%. Given Breedon Group's higher probable upside, analysts plainly believe Breedon Group is more favorable than Michelmersh Brick.
Summary
Breedon Group beats Michelmersh Brick on 4 of the 7 factors compared between the two stocks.
