The Berkeley Group (OTCMKTS:BKGFF – Get Free Report) and Green Brick Partners (NASDAQ:GRBK – Get Free Report) are both consumer cyclical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for The Berkeley Group and Green Brick Partners, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
The Berkeley Group | 0 | 0 | 0 | 0 | N/A |
Green Brick Partners | 0 | 2 | 0 | 0 | 2.00 |
Green Brick Partners has a consensus price target of $52.00, indicating a potential downside of 0.25%. Given Green Brick Partners’ higher probable upside, analysts clearly believe Green Brick Partners is more favorable than The Berkeley Group.
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
The Berkeley Group | N/A | N/A | N/A | $2.62 | 22.26 |
Green Brick Partners | $1.78 billion | 1.32 | $284.63 million | $6.14 | 8.49 |
Green Brick Partners has higher revenue and earnings than The Berkeley Group. Green Brick Partners is trading at a lower price-to-earnings ratio than The Berkeley Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares The Berkeley Group and Green Brick Partners’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
The Berkeley Group | N/A | N/A | N/A |
Green Brick Partners | 16.01% | 24.19% | 15.70% |
Insider and Institutional Ownership
45.9% of The Berkeley Group shares are owned by institutional investors. Comparatively, 78.2% of Green Brick Partners shares are owned by institutional investors. 44.4% of Green Brick Partners shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Green Brick Partners beats The Berkeley Group on 8 of the 9 factors compared between the two stocks.
About The Berkeley Group
The Berkeley Group Holdings plc, together with its subsidiaries, engages in the residential-led and mixed-use property development and ancillary activities in the United Kingdom. The company is involved in land selling activities. It operates under the Berkeley, St Edward, St George, St James, St Joseph, and St William brand names. The Berkeley Group Holdings plc was founded in 1976 and is headquartered in Cobham, the United Kingdom.
About Green Brick Partners
Green Brick Partners, Inc (NYSE: GRBK), the third largest homebuilder in Dallas-Fort Worth, is a diversified homebuilding and land development company that operates in Texas, Georgia, and Florida. Green Brick owns five subsidiary homebuilders in Texas (CB JENI Homes, Normandy Homes, Southgate Homes, Trophy Signature Homes, and a 90% interest in Centre Living Homes), as well as a controlling interest in a homebuilder in Atlanta, Georgia (The Providence Group) and an 80% interest in a homebuilder in Port St. Lucie, Florida (GHO Homes). Green Brick also retains interests in related financial services platforms, including Green Brick Title and BHome Mortgage. The Company is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for its residential neighborhoods and master-planned communities.
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