Analyzing The Berkeley Group (OTCMKTS:BKGFY) and The Sage Group (OTCMKTS:SGPYY)

The Berkeley Group (OTCMKTS:BKGFY) and The Sage Group (OTCMKTS:SGPYY) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Dividends

The Berkeley Group pays an annual dividend of $0.22 per share and has a dividend yield of 0.3%. The Sage Group pays an annual dividend of $0.57 per share and has a dividend yield of 1.5%. The Berkeley Group pays out 5.0% of its earnings in the form of a dividend. The Sage Group pays out 40.4% 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.

Earnings and Valuation

This table compares The Berkeley Group and The Sage 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 $2.91 billion 2.72 $557.67 million $4.39 14.80
The Sage Group $2.46 billion 4.17 $395.53 million $1.41 27.38

The Berkeley Group has higher revenue and earnings than The Sage Group. The Berkeley Group is trading at a lower price-to-earnings ratio than The Sage Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares The Berkeley Group and The Sage 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
The Sage Group N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings for The Berkeley Group and The Sage Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Berkeley Group 3 3 3 0 2.00
The Sage Group 3 4 3 0 2.00

Institutional & Insider Ownership

0.0% of The Berkeley Group shares are owned by institutional investors. Comparatively, 0.2% of The Sage Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

The Berkeley Group has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, The Sage Group has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Summary

The Berkeley Group beats The Sage Group on 5 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 activities in the United Kingdom. It operates under the Berkeley, St Edward, St George, St James, St Joseph, St William, Berkeley First, Berkeley Commercial, Berkeley Partnership, and Berkeley Modular brand names. The company was founded in 1976 and is headquartered in Cobham, the United Kingdom.

About The Sage Group

The Sage Group plc, together with its subsidiaries, provides technology solutions and services for small and medium businesses in North America, Northern Europe, Central and Southern Europe, and internationally. It offers cloud native solutions, such as Sage Intacct, a cloud financial management platform; Sage People, a cloud HR and people management solution; Sage Accounting, a solution for small businesses, accountants and bookkeepers to remotely manage customer data, accounts, and people; Sage Payroll, a payroll and HR software; and CakeHR, a HR management solution that enables small businesses to manage workforces with tools comprises reporting, organization chart, pay slip, and absence request. The company also provides cloud connected and hybrid solutions, including Sage X3, a business management solution; and Sage 50cloud and Sage 200cloud provides a range of cloud connected accounting solutions. The company was founded in 1981 and is headquartered in Newcastle upon Tyne, the United Kingdom.

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