Head-To-Head Analysis: Taylor Wimpey (OTCMKTS:TWODF) versus Tri Pointe Homes (NYSE:TPH)

Taylor Wimpey (OTCMKTS:TWODF) and Tri Pointe Homes (NYSE:TPH) are both consumer cyclical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Profitability

This table compares Taylor Wimpey and Tri Pointe Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taylor Wimpey	N/A	N/A	N/A
Tri Pointe Homes	9.37%	11.75%	7.12%

Valuation and Earnings

This table compares Taylor Wimpey and Tri Pointe Homes’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taylor Wimpey	N/A	N/A	N/A	$0.09	20.57
Tri Pointe Homes	$3.67 billion	0.97	$343.70 million	$3.45	10.76

Tri Pointe Homes has higher revenue and earnings than Taylor Wimpey. Tri Pointe Homes is trading at a lower price-to-earnings ratio than Taylor Wimpey, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Taylor Wimpey and Tri Pointe Homes, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taylor Wimpey	0	3	0	0	2.00
Tri Pointe Homes	0	1	4	0	2.80

Tri Pointe Homes has a consensus price target of $38.20, suggesting a potential upside of 2.94%. Given Tri Pointe Homes’ stronger consensus rating and higher probable upside, analysts clearly believe Tri Pointe Homes is more favorable than Taylor Wimpey.

Institutional & Insider Ownership

39.9% of Taylor Wimpey shares are owned by institutional investors. Comparatively, 97.0% of Tri Pointe Homes shares are owned by institutional investors. 2.5% of Tri Pointe Homes shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Tri Pointe Homes beats Taylor Wimpey on 10 of the 11 factors compared between the two stocks.

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.

About Tri Pointe Homes

Tri Pointe Homes, Inc. engages in the design, construction, and sale of single-family attached and detached homes in the United States. The company operates through a portfolio of six regional home building brands comprising Maracay in Arizona; Pardee Homes in California and Nevada; Quadrant Homes in Washington; Trendmaker Homes in Texas; TRI Pointe Homes in California, Colorado, and the Carolinas; and Winchester Homes in Maryland and Northern Virginia. It operates active selling communities, and owned or controlled lots. The company sells its homes through own sales representatives and independent real estate brokers. It provides financial services, such as mortgage financing, title and escrow, and property and casualty insurance agency services. The company was formerly known as TRI Pointe Group, Inc. and changed its name to Tri Pointe Homes, Inc. in January 2021. Tri Pointe Homes, Inc. was founded in 2009 and is based in Incline Village, Nevada.