Redrow (OTCMKTS:RDWWF) versus M.D.C. (NYSE:MDC) Head-To-Head Contrast

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

Earnings and Valuation

This table compares Redrow and M.D.C.’s top-line revenue, earnings per share and valuation.

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

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

Profitability

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

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

Insider & Institutional Ownership

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, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Redrow and M.D.C., as reported by MarketBeat.com.

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

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

Summary

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

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.

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.