Taylor Wimpey (OTCMKTS:TWODY) and Century Communities (NYSE:CCS) Critical Analysis

Taylor Wimpey (OTCMKTS:TWODY) and Century Communities (NYSE:CCS) are both construction companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Dividends

Taylor Wimpey pays an annual dividend of $1.09 per share and has a dividend yield of 8.4%. Century Communities pays an annual dividend of $1.16 per share and has a dividend yield of 1.9%. Century Communities pays out 16.9% of its earnings in the form of a dividend. Century Communities has increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

99.5% of Century Communities shares are owned by institutional investors. 11.9% of Century Communities shares are owned 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.

Profitability

This table compares Taylor Wimpey and Century Communities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taylor Wimpey	N/A	N/A	N/A
Century Communities	5.16%	9.36%	5.27%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Taylor Wimpey and Century Communities, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taylor Wimpey	1	3	0	1	2.20
Century Communities	0	5	0	1	2.33

Century Communities has a consensus price target of $85.00, indicating a potential upside of 39.25%. Given Century Communities’ stronger consensus rating and higher possible upside, analysts clearly believe Century Communities is more favorable than Taylor Wimpey.

Risk and Volatility

Taylor Wimpey has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Century Communities has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Valuation and Earnings

This table compares Taylor Wimpey and Century Communities”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taylor Wimpey	$4.37 billion	1.06	$433.99 million	N/A	N/A
Century Communities	$4.16 billion	0.43	$333.82 million	$6.85	8.91

Taylor Wimpey has higher revenue and earnings than Century Communities.

Summary

Century Communities beats Taylor Wimpey on 8 of the 14 factors compared between the two stocks.

About Taylor Wimpey

Taylor Wimpey plc operates as a homebuilder in the United Kingdom and Spain. It builds and delivers various homes and communities. Taylor Wimpey plc was incorporated in 1935 and is based in High Wycombe, the United Kingdom.

About Century Communities

Century Communities, Inc., together with its subsidiaries, engages in the design, development, construction, marketing, and sale of single-family attached and detached homes. It is also involved in the entitlement and development of the underlying land; and provision of mortgage, title, and insurance services to its homebuyers. The company offers homes under the Century Communities and Century Complete brands. It sells homes through its sales representatives, retail studios, and internet, as well as through independent real estate brokers in 18 states in the United States. Century Communities, Inc. was founded in 2002 and is headquartered in Greenwood Village, Colorado.