Critical Survey: Unico American (UNAM) versus Berkshire Hathaway (BRK.B)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Unico American -24.02% -14.33% -6.52%
Berkshire Hathaway 16.88% 4.91% 2.35%

Earnings and Valuation

This table compares Unico American and Berkshire Hathaway’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Unico American $36.79 million 1.08 -$8.72 million N/A N/A
Berkshire Hathaway $242.14 billion 2.00 $44.94 billion $5.86 33.46

Berkshire Hathaway has higher revenue and earnings than Unico American.

Volatility & Risk

Unico American has a beta of -0.49, indicating that its stock price is 149% less volatile than the S&P 500. Comparatively, Berkshire Hathaway has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Unico American and Berkshire Hathaway, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unico American 0 0 0 0 N/A
Berkshire Hathaway 0 1 2 0 2.67

Berkshire Hathaway has a consensus target price of $208.33, indicating a potential upside of 6.26%. Given Berkshire Hathaway’s higher possible upside, analysts clearly believe Berkshire Hathaway is more favorable than Unico American.

Institutional and Insider Ownership

26.8% of Unico American shares are owned by institutional investors. Comparatively, 37.0% of Berkshire Hathaway shares are owned by institutional investors. 54.1% of Unico American shares are owned by insiders. Comparatively, 11.0% of Berkshire Hathaway shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Berkshire Hathaway beats Unico American on 10 of the 11 factors compared between the two stocks.

About Unico American

Unico American Corporation, through its subsidiaries, underwrites property and casualty insurance in Arizona, California, Nevada, Oregon, and Washington. The company provides property, casualty, health, and life insurance products, as well as insurance premium financing and membership association services. Its commercial property coverage insures against loss or damage to buildings, inventory, and equipment from natural disasters, including hurricanes, windstorms, hail, water, explosions, and severe winter weather, as well as other events, such as theft and vandalism, fires, storms, and financial loss due to business interruption resulting from covered property damage. The company also provides commercial liability coverage that insures against third party liability from accidents occurring on the insured's premises or arising out of its operation; and writes separate policies to insure commercial property and commercial liability risks on a mono-line basis. In addition, it sells and services daily automobile rental policies; and provides group dental and vision insurance policies, as well as health and life insurance for individuals and groups. The company markets its insurance products primarily through a network of brokers and retail agents. Unico American Corporation was founded in 1969 and is based in Calabasas, California.

About Berkshire Hathaway

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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