Head-To-Head Contrast: Berkshire Hathaway (NYSE:BRK.A) and Its Rivals

Berkshire Hathaway (NYSE: BRK.A) is one of 86 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it contrast to its competitors? We will compare Berkshire Hathaway to related companies based on the strength of its earnings, dividends, institutional ownership, analyst recommendations, valuation, profitability and risk.

Profitability

This table compares Berkshire Hathaway and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berkshire Hathaway 7.73% 5.17% 2.36%
Berkshire Hathaway Competitors 6.42% 1.76% 1.30%

Risk & Volatility

Berkshire Hathaway has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Berkshire Hathaway’s competitors have a beta of 0.89, suggesting that their average stock price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Berkshire Hathaway and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Hathaway 0 2 1 0 2.33
Berkshire Hathaway Competitors 636 2334 2209 48 2.32

Berkshire Hathaway presently has a consensus price target of $295,000.00, suggesting a potential upside of 0.30%. As a group, “Property & Casualty Insurance” companies have a potential upside of 2.41%. Given Berkshire Hathaway’s competitors higher possible upside, analysts clearly believe Berkshire Hathaway has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

10.0% of Berkshire Hathaway shares are owned by institutional investors. Comparatively, 60.2% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 5.4% of Berkshire Hathaway shares are owned by insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Berkshire Hathaway and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Berkshire Hathaway $223.60 billion $24.07 billion 25.90
Berkshire Hathaway Competitors $11.51 billion $1.16 billion 233.59

Berkshire Hathaway has higher revenue and earnings than its competitors. Berkshire Hathaway is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Berkshire Hathaway competitors beat Berkshire Hathaway on 7 of the 13 factors compared.

Berkshire Hathaway Company Profile

Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in various business activities. Its segments include Insurance, such as GEICO, Berkshire Hathaway Primary Group, General Re Corporation and Berkshire Hathaway Reinsurance Group; Burlington Northern Santa Fe, LLC, which is engaged in the operation of the railroad system; Berkshire Hathaway Energy, which includes regulated electric and gas utility; Manufacturing, which includes manufacturers of various products, including industrial, consumer and building products; McLane Company, which is engaged in the wholesale distribution of groceries and non-food items; Service and retailing, which includes providers of various services, including fractional aircraft ownership programs, aviation pilot training and various retailing businesses, and Finance and financial products, which includes manufactured housing and related consumer financing, transportation equipment, manufacturing and leasing, and furniture leasing.

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