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Grouping the Home Circuits (HCs) with the same source is a critical issue of Labeled Optical Burst Switching with Home Circuit (LOBS-HC). To maximize the wavelength utilization in LOBS-HC ring networks, an HC grouping and wavelength assignment scheme, called Longest Path Matching and Graph Coloring (LPMGC), is proposed. LPMGC consists of two phases: grouping and wavelength assignment. First, a heuristic algorithm, named Longest Path Matching (LPM), is proposed to group the HCs according to the longest common path matching between HCs and to make each group as large as possible. And then, Graph Coloring (GC) is introduced to assign wavelengths for HC groups. The numerical results show that the proposed scheme performances better than Complementary HC Assignment (CHA) and some other heuristics in both unidirectional and bidirectional LOBS-HC ring networks in terms of wavelength utilization.