Financial Analysis: Berkshire Hathaway (BRK-B) versus Unico American Corporation (NASDAQ:UNAM)

Berkshire Hathaway (NYSE: BRK-B) and Unico American Corporation (NASDAQ:UNAM) are both property & casualty insurance – nec companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Profitability

This table compares Berkshire Hathaway and Unico American Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berkshire Hathaway 7.57% 5.76% 2.65%
Unico American Corporation -12.14% -6.52% -3.15%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Berkshire Hathaway and Unico American Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Hathaway 0 0 0 0 N/A
Unico American Corporation 0 0 0 0 N/A

Institutional & Insider Ownership

28.1% of Unico American Corporation shares are owned by institutional investors. 54.1% of Unico American Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Berkshire Hathaway has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Unico American Corporation has a beta of -0.54, suggesting that its share price is 154% less volatile than the S&P 500.

Valuation and Earnings

This table compares Berkshire Hathaway and Unico American Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Berkshire Hathaway N/A N/A N/A $11,356.59 0.02
Unico American Corporation $35.27 million 1.46 -$1.40 million ($0.83) -11.71

Berkshire Hathaway has higher revenue, but lower earnings than Unico American Corporation. Unico American Corporation is trading at a lower price-to-earnings ratio than Berkshire Hathaway, indicating that it is currently the more affordable of the two stocks.

Summary

Berkshire Hathaway beats Unico American Corporation on 5 of the 8 factors compared between the two stocks.

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.

Unico American Corporation Company Profile

Unico American Corporation is an insurance holding company. The Company underwrites property and casualty insurance through its insurance company subsidiary. It also provides property, casualty and health insurance through its agency subsidiaries and provides insurance premium financing and membership association services through its other subsidiaries. The Company’s operations are categorized between the Company’s segment, the insurance company operation and other insurance operations. The Company’s remaining operations constitute a range of specialty insurance services. The Company’s insurance company operation is conducted through Crusader Insurance Company (Crusader), its property and casualty insurance company. Crusader is a multiple line property and casualty insurance company. Crusader is licensed as an admitted insurance carrier in the states of Arizona, California, Nevada, Oregon and Washington.

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