Financial Review: M.D.C. (NYSE:MDC) vs. Redrow (OTCMKTS:RDWWF)

M.D.C. (NYSE:MDC) and Redrow (OTCMKTS:RDWWF) are both consumer cyclical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Valuation and Earnings

This table compares M.D.C. and Redrow’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M.D.C.	$4.64 billion	1.02	$401.01 million	$5.28	11.93
Redrow	N/A	N/A	N/A	N/A	N/A

M.D.C. has higher revenue and earnings than Redrow.

Analyst Ratings

This is a summary of recent recommendations and price targets for M.D.C. and Redrow, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
M.D.C.	1	4	0	0	1.80
Redrow	0	1	2	0	2.67

M.D.C. presently has a consensus target price of $52.13, suggesting a potential downside of 17.24%. Given M.D.C.’s higher possible upside, equities research analysts plainly believe M.D.C. is more favorable than Redrow.

Profitability

This table compares M.D.C. and Redrow’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
M.D.C.	8.64%	12.32%	7.34%
Redrow	N/A	N/A	N/A

Insider and Institutional Ownership

88.1% of M.D.C. shares are held by institutional investors. 23.3% of M.D.C. shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

M.D.C. beats Redrow on 7 of the 9 factors compared between the two stocks.

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.

About Redrow

Redrow plc focuses on housebuilding activities in the United Kingdom. It is involved in acquires, develops, and resells land; develops and sells residential housing properties; and business park maintenance services. Redrow plc was founded in 1974 and is based in Flintshire, the United Kingdom.