Analyzing Advanced Drainage Systems (NYSE:WMS) and Barratt Redrow (OTCMKTS:BTDPY)

Advanced Drainage Systems (NYSE:WMS) and Barratt Redrow (OTCMKTS:BTDPY) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares Advanced Drainage Systems and Barratt Redrow’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advanced Drainage Systems	14.82%	29.57%	12.23%
Barratt Redrow	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings for Advanced Drainage Systems and Barratt Redrow, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advanced Drainage Systems	0	2	7	0	2.78
Barratt Redrow	0	0	2	2	3.50

Advanced Drainage Systems presently has a consensus price target of $152.56, suggesting a potential upside of 10.18%. Given Advanced Drainage Systems’ higher probable upside, equities analysts clearly believe Advanced Drainage Systems is more favorable than Barratt Redrow.

Institutional & Insider Ownership

89.8% of Advanced Drainage Systems shares are held by institutional investors. Comparatively, 0.1% of Barratt Redrow shares are held by institutional investors. 1.6% of Advanced Drainage Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Advanced Drainage Systems and Barratt Redrow”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advanced Drainage Systems	$2.90 billion	3.71	$450.17 million	$5.54	24.99
Barratt Redrow	$7.22 billion	1.05	$241.22 million	N/A	N/A

Advanced Drainage Systems has higher earnings, but lower revenue than Barratt Redrow.

Dividends

Advanced Drainage Systems pays an annual dividend of $0.72 per share and has a dividend yield of 0.5%. Barratt Redrow pays an annual dividend of $0.23 per share and has a dividend yield of 2.2%. Advanced Drainage Systems pays out 13.0% of its earnings in the form of a dividend. Advanced Drainage Systems has increased its dividend for 1 consecutive years.

Volatility & Risk

Advanced Drainage Systems has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Barratt Redrow has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Summary

Advanced Drainage Systems beats Barratt Redrow on 10 of the 16 factors compared between the two stocks.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. The company also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. In addition, it provides PVC hubs, rubber sleeves, and stainless-steel bands. The company offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of distribution centers. Advanced Drainage Systems, Inc. incorporated in 1966 and is headquartered in Hilliard, Ohio.

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.