Bellway (OTCMKTS:BLWYF – Get Free Report) and M.D.C. (NYSE:MDC – Get Free Report) are both consumer cyclical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.
Valuation & Earnings
This table compares Bellway and M.D.C.’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Bellway | N/A | N/A | N/A | $1.56 | 21.75 |
M.D.C. | $4.64 billion | 1.02 | $401.01 million | $5.28 | 11.93 |
M.D.C. has higher revenue and earnings than Bellway. M.D.C. is trading at a lower price-to-earnings ratio than Bellway, indicating that it is currently the more affordable of the two stocks.
Dividends
Profitability
This table compares Bellway and M.D.C.’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Bellway | N/A | N/A | N/A |
M.D.C. | 8.64% | 12.32% | 7.34% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Bellway and M.D.C., as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Bellway | 0 | 1 | 1 | 0 | 2.50 |
M.D.C. | 1 | 4 | 0 | 0 | 1.80 |
M.D.C. has a consensus price target of $52.13, suggesting a potential downside of 17.24%. Given M.D.C.’s higher possible upside, analysts plainly believe M.D.C. is more favorable than Bellway.
Insider & Institutional Ownership
49.3% of Bellway shares are owned by institutional investors. Comparatively, 88.1% of M.D.C. shares are owned by institutional investors. 23.3% of M.D.C. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
M.D.C. beats Bellway on 10 of the 14 factors compared between the two stocks.
About Bellway
Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway, Ashberry, and Bellway London brands. The company was founded in 1946 and is headquartered in Newcastle upon Tyne, the United Kingdom.
About M.D.C.
M.D.C. Holdings, Inc., through its subsidiaries, engages in the homebuilding and financial service businesses. Its homebuilding operations include purchasing finished lots or developing lots for the construction and sale primarily of single-family detached homes to first-time and first-time move-up homebuyers under the Richmond American Homes name. The company conducts its homebuilding operations in Arizona, California, Nevada, New Mexico, Oregon, Texas, Washington, Colorado, Idaho, Utah, Alabama, Florida, Maryland, Pennsylvania, Tennessee, and Virginia. Its financial services operations comprise originating mortgage loans primarily for homebuyers; providing insurance coverage primarily to its homebuilding subsidiaries and subcontractors for homes sold by its homebuilding subsidiaries, and for work performed in completed subdivisions; acting as a re-insurer on the claims; selling third-party personal property and casualty insurance products to homebuyers; and offering title agency services to homebuilding subsidiaries and customers in Colorado, Florida, Maryland, Nevada, Pennsylvania, and Virginia. The company was founded in 1972 and is headquartered in Denver, Colorado. As of April 19, 2024, M.D.C. Holdings, Inc. operates as a subsidiary of SH Residential Holdings, LLC.
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