Head-To-Head Analysis: Nippon Paint (OTCMKTS:NPCPF) vs. The Berkeley Group (OTCMKTS:BKGFY)

Nippon Paint (OTCMKTS:NPCPF) and The Berkeley Group (OTCMKTS:BKGFY) are both mid-cap construction companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Dividends

Nippon Paint pays an annual dividend of $4.40 per share and has a dividend yield of 111.5%. The Berkeley Group pays an annual dividend of $0.13 per share and has a dividend yield of 1.4%. Nippon Paint pays out 1,222.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Nippon Paint and The Berkeley Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nippon Paint	7.77%	8.43%	4.30%
The Berkeley Group	N/A	N/A	N/A

Volatility and Risk

Nippon Paint has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, The Berkeley Group has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Nippon Paint and The Berkeley Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nippon Paint	0	1	0	0	2.00
The Berkeley Group	0	0	0	1	4.00

Valuation and Earnings

This table compares Nippon Paint and The Berkeley Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nippon Paint	$10.84 billion	0.85	$841.18 million	$0.36	10.96
The Berkeley Group	$3.10 billion	1.50	$500.02 million	N/A	N/A

Nippon Paint has higher revenue and earnings than The Berkeley Group.

Summary

Nippon Paint beats The Berkeley Group on 6 of the 11 factors compared between the two stocks.

About Nippon Paint

Nippon Paint Holdings Co., Ltd. engages in the paints and fine chemicals businesses. The company offers automotive coatings, including paints for the automotive body, including surface treatment, electrodeposition coating, intermediate coating, and finish coating; paints for plastic components, such as bumpers and interior components; trade-use paints for construction sites, including single-family detached homes, buildings, and bridges; and industrial coatings that are used in a range of products, including construction and farming machinery, exterior construction materials, office equipment, and electric home appliances. It also provides marine coatings, such as antifouling paints; treatment agents for steel and aluminum products; and paints for DIY applications comprising wallpaper, wall cloth, and wooden, steel, and concrete materials. In addition, the company offers surface treatment products comprising functional coatings, which demonstrate various functions, such as hydrophilicity and rust prevention, and substrate films; caulking agents to fill gaps between building materials; adhesives to fix flooring and building materials; and fillers used for base coatings. Further, it is involved in the investment business; manufactures and sells surface treatment agents; and sales of paints and raw materials. The company has operations in Japan, Asia, the Americas, Oceania, and internationally. The company was formerly known as Nippon Paint Co., Ltd. and changed its name to Nippon Paint Holdings Co., Ltd. in October 2014. Nippon Paint Holdings Co., Ltd. was founded in 1879 and is headquartered in Tokyo, Japan.

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.