Comparing Green Brick Partners (NASDAQ:GRBK) & The Berkeley Group (OTCMKTS:BKGFF)

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

Valuation and Earnings

This table compares Green Brick Partners and The Berkeley Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Brick Partners	$1.78 billion	1.41	$284.63 million	$6.14	9.07
The Berkeley Group	N/A	N/A	N/A	$2.62	22.26

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 current recommendations for Green Brick Partners and The Berkeley Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Brick Partners	0	2	0	0	2.00
The Berkeley Group	0	0	0	0	N/A

Green Brick Partners presently has a consensus price target of $52.00, suggesting a potential downside of 6.66%. Given Green Brick Partners’ higher possible upside, analysts clearly believe Green Brick Partners is more favorable than The Berkeley Group.

Profitability

This table compares Green Brick Partners and The Berkeley Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Green Brick Partners	16.01%	24.19%	15.70%
The Berkeley Group	N/A	N/A	N/A

Insider & Institutional Ownership

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

Summary

Green Brick Partners beats The Berkeley Group on 8 of the 9 factors compared between the two stocks.

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.

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.