Analyzing Barratt Redrow (OTCMKTS:BTDPY) and Armstrong World Industries (NYSE:AWI)

Barratt Redrow (OTCMKTS:BTDPY) and Armstrong World Industries (NYSE:AWI) are both mid-cap construction companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Barratt Redrow and Armstrong World Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barratt Redrow	1	2	2	2	2.71
Armstrong World Industries	0	4	5	1	2.70

Armstrong World Industries has a consensus target price of $207.50, suggesting a potential upside of 12.71%. Given Armstrong World Industries’ higher probable upside, analysts plainly believe Armstrong World Industries is more favorable than Barratt Redrow.

Profitability

This table compares Barratt Redrow and Armstrong World Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barratt Redrow	N/A	N/A	N/A
Armstrong World Industries	19.08%	38.97%	17.14%

Risk and Volatility

Barratt Redrow has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Armstrong World Industries has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.

Insider & Institutional Ownership

0.1% of Barratt Redrow shares are owned by institutional investors. Comparatively, 98.9% of Armstrong World Industries shares are owned by institutional investors. 1.0% of Armstrong World Industries 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.

Valuation & Earnings

This table compares Barratt Redrow and Armstrong World Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barratt Redrow	$7.22 billion	0.97	$241.22 million	N/A	N/A
Armstrong World Industries	$1.45 billion	5.49	$264.90 million	$6.99	26.34

Armstrong World Industries has lower revenue, but higher earnings than Barratt Redrow.

Dividends

Barratt Redrow pays an annual dividend of $0.51 per share and has a dividend yield of 5.2%. Armstrong World Industries pays an annual dividend of $1.36 per share and has a dividend yield of 0.7%. Armstrong World Industries pays out 19.5% of its earnings in the form of a dividend. Armstrong World Industries has raised its dividend for 1 consecutive years.

Summary

Armstrong World Industries beats Barratt Redrow on 11 of the 16 factors compared between the two stocks.

About Barratt Redrow

Barratt Redrow plc engages in the housebuilding business in the United Kingdom. The company acquires and develops land; plans, designs, and constructs homes, apartments, penthouses, and communities, as well as undertakes mixed-use regeneration schemes; and develops retail, leisure, office, industrial, and mixed-use properties. It is also involved in the commercial development business under the Wilson Bowden Developments brand name. The company offers its homes under the Barratt Homes, David Wilson Homes, and Barratt London brands. The company was formerly known as Barratt Developments plc and changed its name Barratt Redrow plc in October 2024. Barratt Redrow plc was incorporated in 1958 and is headquartered in Coalville, the United Kingdom.

About Armstrong World Industries

Armstrong World Industries, Inc., together with its subsidiaries, engages in the design, manufacture, and sale of ceiling and wall solutions in the Americas. It operates through Mineral Fiber and Architectural Specialties segments. The company offers mineral fiber, fiberglass wool, metal, wood, felt, wood fiber, and glass-reinforced-gypsum; ceiling component products, such as ceiling perimeters and trims, as well as grid products that support drywall ceiling systems; ceilings, walls, and facades for use in commercial settings; and manufactures ceiling suspension system (grid) products. It serves commercial and residential construction markets, as well as renovation of existing buildings sectors. The company sells its products to resale distributors, ceiling system contractors, wholesalers, and retailers comprising large home centers. Armstrong World Industries, Inc. was founded in 1860 and is headquartered in Lancaster, Pennsylvania.