Tri Pointe Homes (NYSE:TPH – Get Free Report) and Bellway (OTCMKTS:BLWYF – Get Free Report) are both consumer cyclical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Profitability
This table compares Tri Pointe Homes and Bellway’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tri Pointe Homes | 11.71% | 17.37% | 10.40% |
| Bellway | N/A | N/A | N/A |
Insider & Institutional Ownership
97.6% of Tri Pointe Homes shares are owned by institutional investors. Comparatively, 49.3% of Bellway shares are owned by institutional investors. 2.0% of Tri Pointe Homes shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Tri Pointe Homes and Bellway’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tri Pointe Homes | $4.21 billion | 0.62 | $576.06 million | $4.76 | 5.51 |
| Bellway | N/A | N/A | N/A | $1.56 | 17.79 |
Tri Pointe Homes has higher revenue and earnings than Bellway. Tri Pointe Homes is trading at a lower price-to-earnings ratio than Bellway, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings for Tri Pointe Homes and Bellway, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tri Pointe Homes | 0 | 2 | 4 | 0 | 2.67 |
| Bellway | 0 | 2 | 2 | 0 | 2.50 |
Tri Pointe Homes presently has a consensus price target of $33.50, suggesting a potential upside of 27.62%. Given Tri Pointe Homes’ stronger consensus rating and higher possible upside, analysts clearly believe Tri Pointe Homes is more favorable than Bellway.
Summary
Tri Pointe Homes beats Bellway on 10 of the 11 factors compared between the two stocks.
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 also 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.
About Bellway
Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway, Ashberry, and Bellway London brands. The company was incorporated in 1978 and is headquartered in Newcastle upon Tyne, the United Kingdom.
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