Bellway (BWY) Competitors

Bellway (LON:BWY) and Barratt Developments (LON:BDEV) are both mid-cap consumer cyclical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their community ranking, institutional ownership, media sentiment, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Is BWY or BDEV a better dividend stock?

Bellway pays an annual dividend of GBX 111 per share and has a dividend yield of 3.7%. Barratt Developments pays an annual dividend of GBX 16 per share. Bellway pays out 100.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Barratt Developments pays out 13,333.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bellway is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has more risk & volatility, BWY or BDEV?

Bellway has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Barratt Developments has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.

Is BWY or BDEV more profitable?

Bellway has a net margin of 5.48% compared to Barratt Developments' net margin of 2.74%. Bellway's return on equity of 3.78% beat Barratt Developments' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Bellway	5.48%	3.78%	4.55%
Barratt Developments	2.74%	2.07%	2.77%

Does the MarketBeat Community believe in BWY or BDEV?

Barratt Developments received 289 more outperform votes than Bellway when rated by MarketBeat users. Likewise, 72.23% of users gave Barratt Developments an outperform vote while only 70.61% of users gave Bellway an outperform vote.

Company	Underperform	Outperform
Bellway	Outperform Votes 824 70.61%	Underperform Votes 343 29.39%
Barratt Developments	Outperform Votes 1113 72.23%	Underperform Votes 428 27.77%

Do analysts rate BWY or BDEV?

Bellway currently has a consensus price target of GBX 3,252, suggesting a potential upside of 9.05%. Barratt Developments has a consensus price target of GBX 572.50, suggesting a potential upside of 0.00%. Given Bellway's stronger consensus rating and higher possible upside, analysts plainly believe Bellway is more favorable than Barratt Developments.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bellway	0 Sell rating(s)	1 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.75
Barratt Developments	0 Sell rating(s)	2 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.50

Does the media favor BWY or BDEV?

In the previous week, Bellway had 6 more articles in the media than Barratt Developments. MarketBeat recorded 6 mentions for Bellway and 0 mentions for Barratt Developments. Bellway's average media sentiment score of 0.48 beat Barratt Developments' score of 0.00 indicating that Bellway is being referred to more favorably in the media.

Company	Overall Sentiment
Bellway	Neutral
Barratt Developments	Neutral

Which has preferable valuation and earnings, BWY or BDEV?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bellway	£2.34B	1.50	£128.30M	£110.07	27.09
Barratt Developments	£4.17B	0.00	£114.10M	£0.12	N/A

Do institutionals & insiders hold more shares of BWY or BDEV?

97.3% of Bellway shares are held by institutional investors. Comparatively, 60.2% of Barratt Developments shares are held by institutional investors. 3.7% of Bellway shares are held by company insiders. Comparatively, 1.5% of Barratt Developments shares are held by company 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.

Summary

Bellway beats Barratt Developments on 14 of the 19 factors compared between the two stocks.