Head-To-Head Survey: Berkshire Hathaway (BRK.A) vs. Its Rivals

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

Risk & Volatility

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

Profitability

This table compares Berkshire Hathaway and its peers’ 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 6.40% 1.74% 1.30%

Insider & Institutional Ownership

10.0% of Berkshire Hathaway shares are held by institutional investors. Comparatively, 60.2% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 5.4% of Berkshire Hathaway shares are held by insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Berkshire Hathaway and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Hathaway 0 2 1 0 2.33
Berkshire Hathaway Competitors 635 2333 2208 48 2.32

Berkshire Hathaway presently has a consensus price target of $295,000.00, indicating a potential downside of 0.17%. As a group, “Property & Casualty Insurance” companies have a potential upside of 0.90%. Given Berkshire Hathaway’s peers higher probable upside, analysts plainly believe Berkshire Hathaway has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Berkshire Hathaway and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Berkshire Hathaway $223.60 billion $24.07 billion 26.02
Berkshire Hathaway Competitors $11.51 billion $1.16 billion 151.10

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

Summary

Berkshire Hathaway peers 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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