Head to Head Review: Beazer Homes USA (NYSE:BZH) versus Taylor Wimpey (OTCMKTS:TWODY)

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

Earnings and Valuation

This table compares Beazer Homes USA and Taylor Wimpey”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beazer Homes USA	$2.33 billion	0.30	$140.18 million	$3.09	7.58
Taylor Wimpey	$4.37 billion	1.08	$433.99 million	N/A	N/A

Taylor Wimpey has higher revenue and earnings than Beazer Homes USA.

Volatility and Risk

Beazer Homes USA has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500. Comparatively, Taylor Wimpey has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Beazer Homes USA and Taylor Wimpey, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beazer Homes USA	1	1	2	0	2.25
Taylor Wimpey	0	2	0	1	2.67

Beazer Homes USA currently has a consensus price target of $32.33, indicating a potential upside of 38.12%. Given Beazer Homes USA’s higher possible upside, equities analysts plainly believe Beazer Homes USA is more favorable than Taylor Wimpey.

Institutional and Insider Ownership

85.7% of Beazer Homes USA shares are held by institutional investors. 6.5% of Beazer Homes USA shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Beazer Homes USA and Taylor Wimpey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beazer Homes USA	3.91%	7.81%	3.65%
Taylor Wimpey	N/A	N/A	N/A

Summary

Beazer Homes USA beats Taylor Wimpey on 8 of the 13 factors compared between the two stocks.

About Beazer Homes USA

Beazer Homes USA, Inc. operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company also sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Indiana, Delaware, Maryland, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. Beazer Homes USA, Inc. was founded in 1985 and is headquartered in Atlanta, Georgia.

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.