Analyzing The Berkeley Group (OTCMKTS:BKGFF) and Lennar (NYSE:LEN.B)

Insider & Institutional Ownership

45.9% of The Berkeley Group shares are owned by institutional investors. Comparatively, 3.3% of Lennar shares are owned by institutional investors. 14.9% of Lennar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares The Berkeley Group and Lennar”s top-line 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	19.37
Lennar	$32.74 billion	0.61	$2.08 billion	$6.39	13.07

Lennar has higher revenue and earnings than The Berkeley Group. Lennar 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.

Dividends

The Berkeley Group pays an annual dividend of $1.80 per share and has a dividend yield of 3.6%. Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 2.4%. The Berkeley Group pays out 68.8% of its earnings in the form of a dividend. Lennar pays out 31.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares The Berkeley Group and Lennar’s 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
Lennar	4.93%	7.08%	4.61%

Summary

Lennar beats The Berkeley Group on 7 of the 10 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 Lennar

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company's homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land. It primarily sells single-family attached and detached homes in communities targeted to first-time, move-up, active adult, and luxury homebuyers. The company also offers residential mortgage financing, title insurance, and closing services for home buyers and others. In addition, it involves in the fund investment activity; and originates and sells into securitizations commercial mortgage loans. Further, the company develops, constructs, and manages multifamily rental properties. Lennar Corporation was founded in 1954 and is based in Miami, Florida.