Berkeley Group (OTCMKTS:BKGFY) vs. LGI Homes (NASDAQ:LGIH) Head-To-Head Review

LGI Homes (NASDAQ:LGIH) and Berkeley Group (OTCMKTS:BKGFY) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for LGI Homes and Berkeley Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGI Homes	2	1	3	0	2.17
Berkeley Group	2	3	1	1	2.14

LGI Homes presently has a consensus price target of $76.70, suggesting a potential upside of 50.30%. Given LGI Homes’ stronger consensus rating and higher possible upside, equities analysts clearly believe LGI Homes is more favorable than Berkeley Group.

Volatility & Risk

LGI Homes has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500. Comparatively, Berkeley Group has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Institutional and Insider Ownership

84.9% of LGI Homes shares are held by institutional investors. 12.3% of LGI Homes shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares LGI Homes and Berkeley Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LGI Homes	5.93%	5.50%	2.88%
Berkeley Group	N/A	N/A	N/A

Earnings and Valuation

This table compares LGI Homes and Berkeley Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LGI Homes	$2.20 billion	0.53	$196.07 million	$4.53	11.27
Berkeley Group	$3.18 billion	1.66	$489.30 million	N/A	N/A

Berkeley Group has higher revenue and earnings than LGI Homes.

Summary

LGI Homes beats Berkeley Group on 9 of the 13 factors compared between the two stocks.

About LGI Homes

LGI Homes, Inc. designs, constructs, and sells homes. It offers entry-level homes, such as attached and detached homes, and active adult homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. The company also engages in the wholesale business, which include building and selling homes to large institutions looking to acquire single-family rental properties. It serves customers in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, Pennsylvania, Maryland, and Utah. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.

About 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.