Barratt Developments (OTCMKTS:BTDPY) vs. Dream Finders Homes (NASDAQ:DFH) Financial Review

Dream Finders Homes (NASDAQ:DFH) and Barratt Developments (OTCMKTS:BTDPY) are both mid-cap consumer cyclical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Profitability

This table compares Dream Finders Homes and Barratt Developments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dream Finders Homes	8.00%	32.99%	11.78%
Barratt Developments	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Dream Finders Homes and Barratt Developments, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dream Finders Homes	0	2	1	0	2.33
Barratt Developments	0	0	0	1	4.00

Dream Finders Homes currently has a consensus target price of $32.17, indicating a potential upside of 3.56%. Given Dream Finders Homes’ higher probable upside, equities research analysts clearly believe Dream Finders Homes is more favorable than Barratt Developments.

Valuation and Earnings

This table compares Dream Finders Homes and Barratt Developments”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dream Finders Homes	$3.92 billion	0.74	$295.90 million	$3.11	9.99
Barratt Developments	$6.66 billion	1.32	$638.80 million	N/A	N/A

Barratt Developments has higher revenue and earnings than Dream Finders Homes.

Institutional & Insider Ownership

95.6% of Dream Finders Homes shares are owned by institutional investors. Comparatively, 0.1% of Barratt Developments shares are owned by institutional investors. 70.4% of Dream Finders Homes shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Dream Finders Homes has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500. Comparatively, Barratt Developments has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.

Summary

Dream Finders Homes beats Barratt Developments on 8 of the 13 factors compared between the two stocks.

About Dream Finders Homes

Dream Finders Homes, Inc. operates as a holding company for Dream Finders Homes LLC that engages in homebuilding business in the United States. The company operates through four segments: Southeast, Mid-Atlantic, Midwest, and Financial Services. It designs, constructs, and sells single-family entry-level, and first-time and second time move-up homes, as well as active adult homes and custom homes in Florida, Texas, Tennessee, North Carolina, South Carolina, Georgia, Colorado, and the Washington, D.C. metropolitan area. The company markets its homes under various brands, including Dream Finders Homes, DF Luxury, Craft Homes, and Coventry Homes. It also provides insurance agency services, including closing, escrow, and title insurance, as well as mortgage banking solutions. The company sells its homes through its sales representatives and independent real estate brokers. The company was founded in 2008 and is headquartered in Jacksonville, Florida.

About Barratt Developments

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.