Analyzing Barratt Redrow (OTCMKTS:BTDPY) and United Rentals (NYSE:URI)

United Rentals (NYSE:URI) and Barratt Redrow (OTCMKTS:BTDPY) are both construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Dividends

United Rentals pays an annual dividend of $7.88 per share and has a dividend yield of 1.0%. Barratt Redrow pays an annual dividend of $0.21 per share and has a dividend yield of 2.8%. United Rentals pays out 20.4% of its earnings in the form of a dividend. United Rentals has raised its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings for United Rentals and Barratt Redrow, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Rentals	1	3	12	2	2.83
Barratt Redrow	0	2	4	1	2.86

United Rentals presently has a consensus target price of $914.88, indicating a potential upside of 14.90%. Given United Rentals’ higher probable upside, equities analysts clearly believe United Rentals is more favorable than Barratt Redrow.

Earnings & Valuation

This table compares United Rentals and Barratt Redrow”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Rentals	$16.10 billion	3.11	$2.49 billion	$38.68	20.59
Barratt Redrow	$7.22 billion	0.74	$241.22 million	N/A	N/A

United Rentals has higher revenue and earnings than Barratt Redrow.

Insider and Institutional Ownership

96.3% of United Rentals shares are owned by institutional investors. Comparatively, 0.1% of Barratt Redrow shares are owned by institutional investors. 0.5% of United Rentals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares United Rentals and Barratt Redrow’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Rentals	15.49%	30.35%	9.27%
Barratt Redrow	N/A	N/A	N/A

Volatility & Risk

United Rentals has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Barratt Redrow has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Summary

United Rentals beats Barratt Redrow on 13 of the 16 factors compared between the two stocks.

About United Rentals

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The specialty segment rents specialty construction products, including trench safety equipment consists of trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and heating, ventilating, and air conditioning equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment; fluid solutions equipment for fluid containment, transfer, and treatment; and mobile storage equipment and modular office space. This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies. It also sells aerial lifts, reach forklifts, telehandlers, compressors, and generators; construction consumables, tools, small equipment, and safety supplies; and parts for equipment that is owned by its customers, as well as provides repair and maintenance services. The company sells used equipment through its sales force, brokers, website, at auctions, and directly to manufacturers. The company operates in the United States, Canada, Europe, Australia, and New Zealand. United Rentals, Inc. was incorporated in 1997 and is headquartered in Stamford, Connecticut.

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.