Compagnie Générale des Établissements Michelin Société en commandite par actions (OTCMKTS:MGDDY) and The Berkeley Group (OTCMKTS:BKGFY) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.
Earnings & Valuation
This table compares Compagnie Générale des Établissements Michelin Société en commandite par actions 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 |
|---|
| Compagnie Générale des Établissements Michelin Société en commandite par actions | $27.03 billion | 1.00 | $1.96 billion | $2.17 | 13.96 |
| The Berkeley Group | $2.43 billion | 3.16 | $519.43 million | $3.97 | 15.92 |
Compagnie Générale des Établissements Michelin Société en commandite par actions has higher revenue and earnings than The Berkeley Group. Compagnie Générale des Établissements Michelin Société en commandite par actions 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.
Dividends
Compagnie Générale des Établissements Michelin Société en commandite par actions pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. The Berkeley Group pays an annual dividend of $0.22 per share and has a dividend yield of 0.3%. Compagnie Générale des Établissements Michelin Société en commandite par actions pays out 14.7% of its earnings in the form of a dividend. The Berkeley Group pays out 5.5% 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.
Profitability
This table compares Compagnie Générale des Établissements Michelin Société en commandite par actions and The Berkeley Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Compagnie Générale des Établissements Michelin Société en commandite par actions | N/A | N/A | N/A |
| The Berkeley Group | N/A | N/A | N/A |
Volatility and Risk
Compagnie Générale des Établissements Michelin Société en commandite par actions has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, The Berkeley Group has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Compagnie Générale des Établissements Michelin Société en commandite par actions and The Berkeley Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Compagnie Générale des Établissements Michelin Société en commandite par actions | 0 | 3 | 9 | 0 | 2.75 |
| The Berkeley Group | 3 | 4 | 3 | 0 | 2.00 |
Insider and Institutional Ownership
0.3% of Compagnie Générale des Établissements Michelin Société en commandite par actions shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Compagnie Générale des Établissements Michelin Société en commandite par actions beats The Berkeley Group on 6 of the 10 factors compared between the two stocks.
