Comparing Cyrela Brazil Realty S.A. Empreendimentos e Participações (OTCMKTS:CYRBY) and The Berkeley Group (OTCMKTS:BKGFF)

Cyrela Brazil Realty S.A. Empreendimentos e Participações (OTCMKTS:CYRBY) and The Berkeley Group (OTCMKTS:BKGFF) are both consumer cyclical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares Cyrela Brazil Realty S.A. Empreendimentos e Participações and The Berkeley Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cyrela Brazil Realty S.A. Empreendimentos e Participações	17.34%	14.08%	6.72%
The Berkeley Group	N/A	N/A	N/A

Insider and Institutional Ownership

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

Dividends

Cyrela Brazil Realty S.A. Empreendimentos e Participações pays an annual dividend of $0.14 per share and has a dividend yield of 3.5%. The Berkeley Group pays an annual dividend of $1.80 per share and has a dividend yield of 2.9%. Cyrela Brazil Realty S.A. Empreendimentos e Participações pays out 22.6% of its earnings in the form of a dividend. The Berkeley Group pays out 68.8% 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. Cyrela Brazil Realty S.A. Empreendimentos e Participações is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and price targets for Cyrela Brazil Realty S.A. Empreendimentos e Participações and The Berkeley Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cyrela Brazil Realty S.A. Empreendimentos e Participações	0	0	0	0	N/A
The Berkeley Group	0	0	0	0	N/A

Earnings and Valuation

This table compares Cyrela Brazil Realty S.A. Empreendimentos e Participações and The Berkeley Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cyrela Brazil Realty S.A. Empreendimentos e Participações	$1.25 billion	1.23	$188.70 million	$0.62	6.47
The Berkeley Group	N/A	N/A	N/A	$2.62	23.50

Cyrela Brazil Realty S.A. Empreendimentos e Participações has higher revenue and earnings than The Berkeley Group. Cyrela Brazil Realty S.A. Empreendimentos e Participações 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

Cyrela Brazil Realty S.A. Empreendimentos e Participações beats The Berkeley Group on 6 of the 9 factors compared between the two stocks.

About Cyrela Brazil Realty S.A. Empreendimentos e Participações

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.

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.