Financial Review: The Berkeley Group (OTCMKTS:BKGFF) and United Homes Group (NASDAQ:UHG)

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

Institutional & Insider Ownership

45.9% of The Berkeley Group shares are owned by institutional investors. Comparatively, 88.8% of United Homes Group shares are owned by institutional investors. 85.3% of United Homes Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares The Berkeley Group and United Homes Group’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
United Homes Group	33.22%	1,013.13%	22.09%

Analyst Recommendations

This is a summary of current ratings and price targets for The Berkeley Group and United Homes Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Berkeley Group	0	0	0	0	N/A
United Homes Group	0	0	0	0	N/A

Earnings & Valuation

This table compares The Berkeley Group and United Homes Group”s gross 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	23.50
United Homes Group	$414.81 million	0.66	$125.06 million	$5.68	0.99

United Homes Group has higher revenue and earnings than The Berkeley Group. United Homes Group 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.

Summary

United Homes Group beats The Berkeley Group on 7 of the 8 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 United Homes Group

United Homes Group, Inc., a homebuilding company, engages in the design, building, and sale of homes in South Carolina, North Carolina, and Georgia. It provides detached single-family houses, as well as attached single-family houses, including duplex and town houses for entry-level buyers, first time move-ups, second time move-ups, third time move-ups, and custom builds. The company was founded in 2004 and is headquartered in Chapin, South Carolina.