Head to Head Analysis: The Berkeley Group (OTCMKTS:BKGFF) and Skyline Champion (NYSE:SKY)

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

Insider and Institutional Ownership

45.9% of The Berkeley Group shares are owned by institutional investors. 7.0% of Skyline Champion shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Skyline Champion and The Berkeley Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skyline Champion	0	3	2	0	2.40
The Berkeley Group	0	1	1	0	2.50

Skyline Champion currently has a consensus price target of $69.80, suggesting a potential downside of 2.39%. Given Skyline Champion’s higher possible upside, equities research analysts plainly believe Skyline Champion is more favorable than The Berkeley Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Skyline Champion	14.32%	28.09%	21.67%
The Berkeley Group	N/A	N/A	N/A

Valuation and Earnings

This table compares Skyline Champion 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
Skyline Champion	$2.35 billion	1.74	$401.80 million	$5.84	12.24
The Berkeley Group	N/A	N/A	N/A	$2.62	18.97

Skyline Champion has higher revenue and earnings than The Berkeley Group. Skyline Champion 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

Skyline Champion beats The Berkeley Group on 8 of the 11 factors compared between the two stocks.

About Skyline Champion

Skyline Champion Corporation produces and sells factory-built housing in North America. The company offers manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for the multi-family and hospitality sectors. It builds homes under the Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes brands in the United States; and Moduline and SRI Homes brand names in western Canada. The company also provides construction services to install and set-up factory-built homes; operates a factory-direct manufactured home retail business under the Titan Factory Direct and Champion Homes Center brand names with 31 sales centers in the United States; and engages in the transportation of manufactured homes and recreational vehicles. The company was founded in 2010 and is headquartered in Troy, Michigan.

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.