Contrasting The Berkeley Group (OTCMKTS:BKGFF) and Green Brick Partners (NASDAQ:GRBK)

The Berkeley Group (OTCMKTS:BKGFF) and Green Brick Partners (NASDAQ:GRBK) are both consumer cyclical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Insider & Institutional Ownership

45.9% of The Berkeley Group shares are held by institutional investors. Comparatively, 78.2% of Green Brick Partners shares are held by institutional investors. 44.4% of Green Brick Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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%

Earnings & Valuation

This table compares The Berkeley Group and Green Brick Partners’ revenue, earnings per share and valuation.

	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	1.39	$284.63 million	$6.14	8.93

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.

Analyst Ratings

This is a summary of recent recommendations and price targets for The Berkeley Group and Green Brick Partners, as reported by MarketBeat.

	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, suggesting a potential downside of 5.15%. Given Green Brick Partners’ higher possible upside, analysts plainly believe Green Brick Partners is more favorable than The Berkeley Group.

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.